According to CoinGlass, bitcoin dipped below $80,000 to roughly $79,300–79,500, but later recovered above $80,500; the total crypto market capitalization fell by less than 0.1%.
Liquidations in the crypto market
Over 24 hours, liquidations of cryptocurrency positions exceeded $800 million. In a four‑hour window, $436.4 million of positions were forcibly closed, of which $404.2 million belonged to traders who were long the market.
When the price falls, the margin of traders using leverage can be insufficient to cover losses, and exchanges forcibly close those positions. The selling of assets puts additional downward pressure on prices, creating a chain reaction that accelerates the decline.
Outflows from spot bitcoin exchange-traded funds (ETFs)
Over two trading days, US spot bitcoin exchange-traded funds (ETFs) lost a total of about $773.4 million: on 23 October funds saw outflows of $137.94 million, and the previous day the net outflow was $635.49 million. The outflow on 22 October was the largest single-day figure since the end of June.
These outflows heightened concerns about demand from institutional investors, although the outflows themselves do not prove they caused bitcoin’s decline.
Other market factors adding pressure
On 23 October US equity indices closed lower: the Nasdaq fell 0.2%, the Dow Jones lost 1.2%, and the S&P 500 was down 0.5%. A rise in oil added further risk — Brent futures gained 3.1% to $116.72 per barrel.
Market participants also noted the scheduled meeting of the Federal Reserve (the Fed) on 27–28 October and the low liquidity over the weekend, when US stock exchanges and spot ETFs are closed; in such conditions large orders and forced liquidations can have a greater impact on cryptocurrency prices.
Impact on prices, exchange services and savings
Sharp bitcoin swings show up in exchange prices and at cash exchange bureaux: during downturns quotes on exchanges and at bureaux can differ significantly. This affects the amount received or paid when buying or selling cryptocurrency at bureaux and on exchanges.
Volatility also affects card payment conversions and the value of crypto savings. The short-term recovery above $80,500 does not yet mean the sell-off is over — market attention is focused on the price’s ability to hold above $80,000, further flows into spot ETFs and signals from the Fed.
