Bitcoin Drops Below $80,000 Amid $800 Million in Liquidations and Major ETF Outflows

Bitcoin (BTC) experienced a sharp sell-off on Saturday, falling below the critical $80,000 psychological level to an intraday low of $79,277. The price decline was part of a broader cryptocurrency market downturn, exacerbated by a cascade of leveraged liquidations and significant outflows from U.S. spot Bitcoin exchange-traded funds (ETFs).

Long Positions Liquidated

The price drop triggered a wave of forced liquidations across the market. In the 24 hours leading up to Saturday, the total crypto market saw approximately $800 million in liquidations, with over 213,000 traders affected, according to data from CoinGlass.

Bitcoin positions accounted for $235 million of that total, the vast majority of which were leveraged long bets, indicating that many traders were caught off guard while anticipating a price rebound. The sell-off extended to other major cryptocurrencies, with Ethereum (ETH) falling to around $2,297, a daily loss of about 4.6%, and Solana (SOL) dropping below the $100 mark.

Institutional Sentiment Shifts

A key driver behind the downturn appears to be a reversal in institutional fund flows. U.S. spot Bitcoin ETFs experienced a net outflow of approximately $635.6 million on October 22, the largest single-day withdrawal since June, according to data cited by CryptoTicker.

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Major funds were heavily impacted, with BlackRock’s IBIT seeing outflows of around $254 million and Fidelity’s FBTC losing approximately $217 million. Another outflow of $137.9 million followed on October 23, bringing the two-day total withdrawal to nearly $774 million. This erased more than 70% of the $1.07 billion in net inflows recorded between October 19 and 21, signaling a cooling of institutional demand.

Broader Market Headwinds

The crypto market's weakness coincided with broader risk-off sentiment in traditional markets, as the Nasdaq Composite fell approximately 2.6% on October 22. Macroeconomic uncertainty, including geopolitical tensions in the Middle East driving up oil prices, is also weighing on investor sentiment ahead of the U.S. Federal Reserve's interest rate decision scheduled for October 28.

For the near term, analysts are watching the $80,000 level closely. A sustained break below this point could see Bitcoin test further support zones at $78,000 and the $76,000-$77,000 range. Conversely, reclaiming the $80,000 level could alleviate selling pressure, with potential resistance seen between $82,000 and $83,000.