Bitcoin Tumbles Toward $81,000, Ethereum Falls Below $2,400 Amid Leveraged Long Liquidations
Bitcoin experienced a sharp decline early Friday, dipping below the $81,000 mark. As of 00:47 AM Taipei time on October 23rd, Bitcoin was trading around $81,366, down approximately 3.72% over the preceding 24 hours, with an intraday low reaching $81,331, according to CoinGecko data.
Ethereum saw a more significant drop, trading at roughly $2,383 at the same time, a 5.1% decrease in the past 24 hours and falling below the key $2,400 psychological level.
CoinGecko data revealed that Bitcoin’s 24-hour trading range spanned from a high of approximately $84,789 to a low of $81,331, a difference of nearly $3,460. Ethereum’s 24-hour high was around $2,518, with its price retracing over $130 from that peak.
This downturn effectively erased most of the gains seen just days prior. On the evening of October 21st, Bitcoin had surpassed $84,000 and Ethereum was approaching $2,500, buoyed by approximately $550 million in net inflows into spot ETFs over the preceding two days. The recent price action indicates that both major cryptocurrencies have relinquished nearly all of those gains in less than 48 hours.
Finst reported that Bitcoin has largely traded within a range of $79,800 to $87,220 in October. The current price levels are approaching the lower boundary of this monthly range.
The sharp sell-off triggered substantial liquidations of leveraged long positions. According to liquidation data from Swolecharts, as of 00:55 AM Taipei time on October 23rd, total market liquidations on October 22nd (UTC) amounted to approximately $221 million, with leveraged long positions accounting for a dominant $207 million, or 93.7% of the total.
By cryptocurrency, Bitcoin liquidations reached about $77 million, Ethereum liquidations were around $67.68 million, and Solana (SOL) saw $7.49 million in liquidations. The largest single liquidation was a BTC long position on Binance valued at approximately $11.78 million, with its liquidation price set at $83,526.
The selling pressure in the crypto market mirrored a broader downturn in U.S. equities. As of 00:55 AM Taipei time, the Nasdaq Composite Index was down 2.47%, the S&P 500 had fallen 1.3%, and the Dow Jones Industrial Average was trading relatively flat, according to Yahoo Finance.
Earlier reports suggested that escalating geopolitical tensions, potentially involving Iran and the U.S. following midterm elections, were driving up oil prices and contributing to a sell-off in AI-related stocks, leading the tech sector lower. These reports regarding military actions have not yet been officially confirmed.
Concurrently, major crypto-related stocks also experienced declines. BlackRock’s iShares Bitcoin Trust (IBIT) fell 4.25% to $45.81, Coinbase (COIN) was down 4.98%, and MicroStrategy (MSTR) dropped 5.6%. Data on daily spot ETF flows was not yet available and was expected after the U.S. stock market close.
Market attention is now shifting to the $80,000 psychological level and the monthly low of around $79,800. Finst noted that some market participants believe a break below $82,500 could open the door for a further decline toward the $70,000 range.
The current price decline appears to have occurred in two distinct phases. The first phase saw Bitcoin retreat from around $85,000 during Asian trading hours. The second phase commenced after the U.S. stock market opened, with Bitcoin resuming its downward trend as the Nasdaq’s losses widened, briefly approaching the $81,000 level.
For Ethereum, the breach of $2,400 has transformed the $2,500 level from support into resistance. The significant liquidation volume in ETH, comparable to BTC, suggests relatively high leverage within the Ethereum market.
This latest downturn underscores that Bitcoin is still being treated as a high-risk asset by the market, particularly in the face of geopolitical uncertainties and corrections in U.S. tech stocks. The rapid reversal of gains, fueled by recent ETF inflows, and the overwhelming proportion of leveraged long liquidations highlight that those positions were the primary victims of this sharp sell-off.
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