Bitcoin Price Today Falls Below $80,000 as ETF Outflows and Liquidations Deepen the Sell-Off

Key Takeaways

• Bitcoin fell below $80,000 and traded near $79,500, extending its decline from last week’s rebound above $83,000.
• US spot Bitcoin ETFs recorded approximately $773 million in combined net outflows on October 22 and 23.
• The price decline triggered roughly $820 million to $837 million in cryptocurrency futures liquidations, with leveraged long positions accounting for more than 90% of the total.
• Elevated oil prices, persistent US inflation and uncertainty before the Federal Reserve’s October 28 decision are reducing demand for speculative assets.
• Bitcoin must recover above $80,000 and then $82,000 to stabilize its short-term outlook, while $78,000 and $75,000 are the next downside levels to watch.

The Bitcoin price today fell below $80,000 as heavy exchange-traded fund outflows, forced liquidations and concerns about US monetary policy intensified selling across the cryptocurrency market.

Bitcoin traded near $79,500 on Monday, down approximately 1.6% over 24 hours. The cryptocurrency reached an intraday low around $79,400 after failing to sustain an earlier recovery toward $80,950.

Ethereum also weakened, falling approximately 2.5% to $2,303, as the decline spread across major digital assets.

Bitcoin Price Falls Back Below $80,000

Bitcoin’s latest decline follows a short-lived rebound above $83,500 on October 21. From that level, BTC has lost approximately 4.8% in less than a week.

The move below $80,000 is important because the level had served as both psychological and technical support during recent sessions. Buyers repeatedly defended the area, but weakening institutional demand and leveraged selling eventually overwhelmed the bids.

Bitcoin is now trading roughly 37% below its 2026 record high above $126,000. The size of that decline has weakened momentum and left traders increasingly sensitive to ETF flows, interest rates and broader risk sentiment.

Bitcoin ETF Outflows Reach $773 Million in Two Days

Institutional flows have become one of the clearest sources of pressure.

US spot Bitcoin ETFs recorded approximately $635.5 million in net outflows on October 22, their largest daily withdrawal since June. The outflow ended a brief period of renewed buying and pushed October’s cumulative ETF flows back into negative territory.

Another estimated $137.9 million left the funds on October 23, taking the two-day total to approximately $773.4 million. BlackRock’s IBIT reportedly accounted for around $110 million of the second day’s withdrawals.

The reversal was particularly notable because the ETFs had received more than $500 million on each of two earlier October sessions.

The rapid transition from inflows to outflows suggests that institutional sentiment remains unstable. Investors are willing to buy during periods of improving liquidity expectations, but they are also reducing exposure quickly when oil, inflation or Treasury yields move higher.

ETF selling is especially important because these funds have become a significant source of marginal demand. When they experience sustained inflows, issuers must acquire additional Bitcoin. When flows turn negative, that supportive demand disappears and may be replaced by selling from market makers or authorized participants.

Liquidations Accelerate the Bitcoin Sell-Off

The initial decline was amplified by forced closures of leveraged cryptocurrency positions.

CoinGlass-linked estimates placed total crypto futures liquidations at approximately $820 million to $837 million over 24 hours. More than 90% of the liquidated positions were leveraged bets on rising prices.

Bitcoin accounted for approximately $233 million to $240 million of the total, while Ethereum liquidations reached roughly $182 million. More than $200 million in positions were reportedly eliminated during the most intense one-hour period.

Liquidations occur when an exchange automatically closes a leveraged position after the trader’s collateral falls below the required level.

The process can create a negative feedback loop:

1. Bitcoin falls through a widely watched support level.
2. Highly leveraged long positions begin losing collateral.
3. Exchanges automatically sell those positions.
4. Forced selling drives Bitcoin lower.
5. Additional positions reach their liquidation levels.

Weekend liquidity is usually thinner than during US trading hours, allowing relatively modest sell orders to produce larger price movements. That helped transform the break below $80,000 into a broader liquidation cascade.

Why Is Bitcoin Falling Today?

The latest decline is being driven by a combination of institutional, technical and macroeconomic pressures.

ETF Demand Has Weakened

The $773 million two-day withdrawal indicates that institutional investors are reducing risk before this week’s Federal Reserve decision.

One or two days of outflows do not establish a long-term trend. However, Bitcoin may struggle to recover while ETF demand remains inconsistent.

Higher Oil Prices Are Reviving Inflation Concerns

Brent crude remains near $115 per barrel following attacks on Saudi infrastructure and continued threats to Gulf oil shipments.

Higher energy prices can increase inflation and encourage the Federal Reserve to keep interest rates elevated. That is generally negative for Bitcoin because higher yields make cash and government bonds more attractive relative to assets that produce no income.

The Federal Reserve May Remain Hawkish

The Fed is widely expected to keep its target range at 3.75%–4.00% on October 28. Markets assign a probability of more than 90% to a pause.

The main risk for Bitcoin is not necessarily an unexpected October hike. It is the possibility that Fed Chair Kevin Warsh signals another increase in December.

Persistent inflation, oil above $110 and strong business activity could encourage the Fed to maintain restrictive monetary conditions. Bitcoin has historically performed better when global liquidity is expanding and borrowing costs are falling.

Technology Stocks Have Also Weakened

Bitcoin’s decline has coincided with renewed selling in technology and AI-related stocks. The Nasdaq recorded a second consecutive weekly decline as investors questioned whether enormous AI infrastructure investments would generate sufficient returns.

The synchronized decline suggests that Bitcoin is currently trading more like a high-beta risk asset than a defensive alternative to traditional financial markets.

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Will the Fed Decision Help Bitcoin Recover?

The market reaction will depend heavily on Warsh’s policy guidance.

Dovish Hold

If the Fed leaves rates unchanged and emphasizes weaker employment or slower growth, Treasury yields could decline. That would improve the liquidity outlook and potentially help Bitcoin recover above $80,000.

A decisive move through $82,000 would be the first indication that the recent sell-off is losing momentum.

Hawkish Hold

If Warsh highlights accelerating inflation and suggests a December increase is likely, Bitcoin could remain under pressure.

A hawkish message would probably support the dollar and Treasury yields, while reducing demand for speculative assets. Under this scenario, BTC could test $78,000 or the $77,600 area.

Unexpected October Hike

A surprise 25-basis-point increase would create the greatest short-term downside risk. Bitcoin could face another liquidation wave as traders rapidly adjust to tighter monetary policy.

However, futures markets assign only a small probability to this outcome.

Bitcoin Technical Levels to Watch

Bitcoin must reclaim $80,000 quickly to reduce the risk of a deeper correction.

The first resistance area is between $80,000 and $81,000. Above that, the next obstacles are around $82,000 and $83,500, where the most recent recovery stalled.

A break above $83,500 could open the way toward $85,000 and then $87,000. Without stronger ETF inflows, however, sustaining such a recovery may prove difficult.

On the downside, the initial support zone lies between $78,000 and $79,000. Bitcoin’s August breakout structure remains broadly intact while this area holds.

A sustained move below $78,000 would expose approximately $77,600, an on-chain cost-basis level watched by some analysts. Below that, $75,000 becomes the next major psychological and technical target.

Is the Liquidation Wave a Capitulation Signal?

Large liquidation events can remove excessive leverage and create conditions for a rebound. Once crowded long positions have been closed, the market may require less selling to reach equilibrium.

However, liquidation alone does not guarantee that a bottom has formed.

A more convincing stabilization signal would require several developments:

• Bitcoin reclaiming $80,000;
• US spot ETFs returning to net inflows;
• Funding rates remaining neutral rather than immediately becoming heavily positive;
• Treasury yields and oil prices stabilizing;
• The Fed avoiding an unexpectedly hawkish message.

Until those conditions emerge, the move below $80,000 should be treated as a genuine loss of support rather than merely a brief intraday fluctuation.

Bitcoin’s next direction will depend on whether buyers return near $78,000 and whether institutional ETF demand improves. The Federal Reserve decision on Wednesday, followed by US GDP and PCE inflation data on Thursday, could determine whether BTC recovers above $80,000 or extends the correction toward $75,000.