Bitcoin Sees $2.4 Billion in Liquidations Amid Market Downturn

Bitcoin experienced a significant decline this week, falling from $85.7K to approximately $82.5K, leading to over $2.4 billion in liquidations across crypto positions. The majority of these liquidations impacted traders who were betting on price increases.

The sell-off coincided with a challenging period for broader markets, marked by rising bond yields and increasing oil prices. In early October 2026, Bitcoin's price fluctuated between highs of around $87.3K and lows near $80.3K. By October 9-10, it had partially recovered to about $82.5K.

Throughout the week, individual sessions saw liquidations ranging from $696 million to over $1.2 billion, with long positions constituting approximately 85%-93% of the total liquidations. Reports indicated that between 100,000 and 180,000 traders faced forced closures during single sessions.

The overall crypto market capitalization also suffered, dropping roughly $110 billion within a 36-hour timeframe. Contributing factors included a rise in US Treasury yields, which surpassed 5.3%, and negative flows from US spot Bitcoin ETFs, with outflows reaching hundreds of millions on peak days.

On-chain data revealed that short-term holders sent 55,600 BTC to exchanges at a loss during the downturn, indicating a leverage flush rather than a complete capitulation. Despite the turmoil, open interest in futures and derivatives remained stable at around $150 billion, suggesting that traders are still engaged in the market.

Currently, traders are focusing on technical levels around $82,500, with significant clusters between $81,000 and $84,000 as they assess the market's next moves.