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Bitcoin came under renewed selling pressure on October 15 as nearly $958 million in leveraged cryptocurrency positions were liquidated across the market, raising concerns that BTC could fall toward the $78,000 level.
Around $957.77 million in crypto positions were wiped out during the liquidation wave, with long positions accounting for approximately 91.7% of the total. About $878.07 million in leveraged bullish positions were liquidated as traders reacted to renewed concerns over U.S. inflation and the outlook for Federal Reserve interest rates.
Ethereum recorded the largest share of liquidations at around $292.83 million, while Bitcoin followed with approximately $203.01 million. Together, the two largest cryptocurrencies accounted for more than half of the reported liquidations.
Bitcoin initially held above the important $83,000 support area before selling pressure pushed the cryptocurrency close to $80,000. It subsequently recovered toward $81,000, although its failure to reclaim previous support has left the short-term market structure vulnerable.
Bitcoin Loses Key $83K Support
The liquidation of more than $200 million in Bitcoin positions intensified downward pressure on BTC and pushed the asset below the $83,000 level that had previously attracted leveraged buyers.
Bitcoin also struggled to recover above the $84,300 to $84,500 area, reinforcing concerns that sellers remain in control of the short-term trend.
If buyers absorb the remaining liquidation-driven selling pressure, Bitcoin could attempt a recovery toward $82,500 before targeting higher resistance levels.
However, another break below $80,000 could trigger additional stop-loss orders and leveraged liquidations. Under that scenario, the next significant downside area could emerge near $78,000.
The risk comes as Bitcoin trades near a one-month low. Market data showed BTC falling to around $80,247 overnight before recovering, while investors continued to assess whether tighter U.S. monetary policy could place further pressure on risk assets.
Hotter Inflation Adds Pressure to Bitcoin
The latest U.S. inflation report has added another source of uncertainty for cryptocurrency investors.
The U.S. Consumer Price Index rose 0.6% in September and increased 3.7% year over year, compared with 3.4% annual inflation in August. Core CPI, which excludes food and energy, increased 0.3% during the month and 2.6% from a year earlier.
The stronger inflation reading increased expectations that the Federal Reserve could keep monetary policy tighter for longer or consider further interest-rate increases.
Higher interest rates can create difficulties for speculative assets such as Bitcoin because investors may shift toward assets offering attractive yields with comparatively lower risk.
The pressure has not been limited to consumer inflation. U.S. producer prices rose 1.3% in September, significantly exceeding economists’ expectations, while annual producer-price inflation climbed to 6.3%.
The latest PPI figures add to concerns that inflationary pressure could remain persistent, potentially complicating Bitcoin’s near-term recovery.
Could Bitcoin Recover Toward $85K?
Despite the immediate downside risk, historical market performance offers some support for bullish investors.
Matt Mena, Senior Research Strategist at 21Shares, said Bitcoin has historically performed relatively well following stronger-than-expected core inflation readings.
According to Mena, Bitcoin’s average daily return during the seven days following higher-than-expected core CPI releases since 2023 has been around 1.21%.
He suggested Bitcoin could recover toward $85,000 and potentially $90,000 if uncertainty surrounding the broader macroeconomic environment begins to ease.
For now, however, BTC’s position around the $80,000 to $81,000 range leaves the market vulnerable to another round of selling.
Fed Outlook Remains Critical for BTC
Attention is now shifting toward the Federal Reserve and how policymakers respond to renewed inflation pressure.
Persistent inflation could strengthen the case for tighter monetary policy, which would likely remain a headwind for cryptocurrencies and other risk-sensitive assets.
Bitcoin bulls will be watching whether BTC can regain the $83,000 area and establish support above it. A stronger recovery could reopen the path toward $85,000, while sustained selling below $80,000 would increase the probability of a move toward $78,000.
With leverage already being rapidly removed from the market, Bitcoin’s next major move is likely to depend on whether buyers can absorb the remaining selling pressure and whether the macroeconomic outlook begins to improve.
