Bitcoin has broken below $83,000, extending a sharp crypto selloff that has already erased hundreds of millions of dollars in leveraged bullish positions.
The move follows a deterioration in institutional flows as well. U.S. spot Bitcoin ETFs recorded $89.8 million of net outflows on Oct. 5 and another $3.2 million on Oct. 6, according to Farside Investors, removing one source of buying pressure just as macro conditions turned less favorable.
BTC had traded near $86,600 on Tuesday before the selloff accelerated, meaning the latest break has erased more than $3,500 from Bitcoin in roughly a day.
$550M Liquidation Wave Accelerates Bitcoin’s Drop
Leverage has magnified the decline.
Around $550 million in crypto positions were liquidated over 24 hours, with roughly $487 million coming from long positions as traders betting on higher prices were forced out.
Bitcoin had already fallen from about $85,341 to $83,790 in roughly 20 minutes during the first major liquidation wave.
That mechanism matters because forced liquidations can create additional selling regardless of whether holders actually want to exit.
Oil, Treasury Yields and the Dollar Add Pressure
The selloff is not happening in isolation.
Brent crude moved above $101 as geopolitical tensions around the Strait of Hormuz intensified, while the 10-year Treasury yield climbed above 5.3% and the U.S. Dollar Index pushed above 102.
That reverses a recent macro tailwind. Bitcoin previously rallied toward $85,000 as falling oil prices eased pressure on bond yields.
Higher yields now make non-yielding speculative assets less attractive, while a stronger dollar tightens financial conditions across crypto.
$80K Becomes the Next Bitcoin Test
The $83,000 region had repeatedly acted as support after Bitcoin’s September recovery.
Our Bitcoin outlook identified the low-$80,000s as the floor beneath repeated failures around $87,000.
With $83,000 now broken, attention shifts toward $82,000 and then $80,000. Earlier technical analysis from FxPro similarly identified a sustained break below $83,000 as a potential path toward $80,000.
