Bitcoin Falls Below $82,000 as $770M in Crypto Liquidations Hit Traders

Bitcoin fell below $82,000 on Monday evening in the US, triggering another wave of forced selling across the crypto market. By the time the move reached Asian trading hours on Tuesday, traders were also watching a sharp decline in South Korean stocks and preparing for the latest US inflation report.

Bitcoin dropped 2.8% over 24 hours to $81,382 as of 9:20 p.m. ET on Monday, October 12. Ethereum fell 4.6% to $2,425. Among the top 10 cryptocurrencies, Zcash recorded the steepest decline, dropping 10.4% to $1,149. Solana lost 7.5%, while XRP fell 6.4%.

The sell-off came alongside approximately $771 million in crypto liquidations over 24 hours, according to CoinGlass data. Long positions accounted for $685.6 million of that total, showing that traders betting on rising prices absorbed most of the losses.

Long Traders Bear the Brunt of the Sell-Off

The liquidation wave shows how quickly leveraged positions can turn against traders when prices fall.

Liquidations occur when exchanges forcibly close positions because traders no longer have enough margin to meet maintenance requirements. Long positions are particularly vulnerable during sudden price drops because they depend on the market moving higher.

CoinGlass recorded $631.8 million in liquidations during the 12 hours, including $600 million in long positions. The figures reflect different time windows within the broader 24-hour sell-off.

Ethereum and Bitcoin also saw substantial forced selling. Ethereum liquidations at $181.71 million and Bitcoin liquidations at $192.14 million.

The latest move follows another wave of long liquidations earlier in October. Altcoin Buzz previously reported that Bitcoin fell below $84,000 as more than $485 million in long positions were liquidated.

ETF Outflows Add to Bitcoin's Pressure

Institutional investment flows have also weakened. US spot Bitcoin ETFs recorded $681.1 million in net outflows during the week of October 5-9, according to SoSoValue. Spot Ether ETFs lost another $542 million over the same week.

The withdrawals add to the pressure on a market already dealing with falling prices and leveraged positions. They also follow a sharp reversal in Bitcoin ETF flows earlier in October.

In its recent coverage, Altcoin Buzz reported that US spot Bitcoin ETFs shed $487 million in a single session, marking their largest daily outflow since late June. That earlier report highlighted how quickly institutional demand can shift after a period of inflows.

ETF outflows do not prove that institutional selling caused Bitcoin's latest decline. However, they indicate that these investment products were not providing a consistent source of fresh buying demand during the reported period.

South Korean Stocks Add to the Risk-Off Mood

The pressure extended beyond crypto. South Korea's Kospi index fell 6.1% on Tuesday morning. Weakness in technology stocks, particularly semiconductor and memory-chip companies, added to concerns across Asian markets.

Bitmine Chairman Tom Lee suggested that the decline in Korean equities could be spilling over into crypto markets.

Min Jung, a research associate at Presto Research, also pointed to weakness in US technology stocks and the resulting pressure on Asian equities. The sharp fall in the Kospi reportedly triggered a sell-side circuit breaker.

These moves came amid broader macroeconomic and geopolitical uncertainty. Elevated US Treasury yields and a stronger dollar have made investors more cautious about risk-sensitive assets, while escalating Middle East tensions have added another source of uncertainty.

The simultaneous declines in stocks and crypto point to a wider risk-off environment, although the available data does not establish that any single factor caused Bitcoin's move below $82,000.

Strategy Buys Bitcoin as Prices Fall

Despite the sell-off, corporate crypto purchases continued.

Strategy disclosed on Monday that it acquired another 250 BTC for approximately $21.5 million between October 5 and October 11. The company paid an average of $86,194 per bitcoin, above the $81,382 price reported later on Monday evening.

Related: Strategy Buys 250 Bitcoin and Retires $192.4M of STRC

Bitmine Immersion Technologies also announced that its Ethereum treasury had reached 6,028,946 ETH after purchasing 12,532 ETH over the preceding week.

These purchases show that some corporate treasuries continued accumulating crypto during the period. However, the announcements do not establish whether those purchases were large enough to offset broader selling pressure or ETF withdrawals.

US Inflation Data Is the Next Market Test

The next major scheduled catalyst is the US Consumer Price Index (CPI) report for September, due Wednesday, October 14, according to the schedule cited in the market reports.

Economists cited in the reporting expected annual inflation to rise to 3.7%, from 3.4%. A higher-than-expected reading could strengthen concerns about interest rates staying elevated and weigh further on risk assets. A softer reading could ease some of that pressure, although the market reaction would also depend on the details of the report.

Bitcoin's decline below $82,000 has therefore arrived at a sensitive point for crypto traders. ETF withdrawals have weakened a source of demand, leveraged long positions have absorbed most of the liquidation losses, and a sharp decline in Asian equities has added to market caution.

The inflation report is the next key event traders will be watching as they assess whether Bitcoin can regain ground or faces further pressure.