Bitcoin Dips Below $80K as $939M Liquidation Wave Hits
A $12B options expiry on Oct. 30 puts $78K and $95K in focus as traders brace for a volatile move.
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A $12B options expiry on Oct. 30 puts $78K and $95K in focus as traders brace for a volatile move.
The analyst views a move toward the 200-day average as a potentially healthy higher low, while warning that Bitcoin and Ether could still test lower support.
The report pairs a recovery in Bitcoin during Q3 with near-term caution as the Federal Reserve resumed tightening.
The 20-point retreat from a 2026 high of 73 marks a sharp shift in the index reading over just 10 days, though it remains in neutral territory.
The break puts a closely watched round-number level back in focus, with traders assessing whether Bitcoin can reclaim it or establish a lower range.
Thirteen straight weeks of XRP ETF inflows have not insulated the token from macro pressure, while rising whale deposits add a potential supply overhang.
Hougan's case rests on Bitcoin's potential role as a scarce asset and on demand from ETFs, advisers, companies and sovereign buyers.
Lower liquidation clusters appear more fragile than the short positions stacked above $85K, leaving nearby downside levels in focus.
The model's demand bottleneck scenario links automation to lower consumption and weaker long-run growth, complicating the bullish case that AI gains will lift Bitcoin.
Altcoins and leveraged longs bore the brunt of the selloff, while shifting Fed rate expectations and Treasury yields remain key signals for crypto traders.
The rapid flush pulled other markets lower, linking Bitcoin’s price break to a wider liquidation-driven decline.
Hotter core inflation lifted October Fed hike odds to 41%, putting pressure on risk assets as Bitcoin tests support where spot bids overlap with leveraged long liquidations.
BlackRock's reported cuts to equity, AI-chip and long-duration bond exposure add an institutional risk-off signal to rate-cut concerns.
Moody’s puts US data center spending at $700B this year, while Fink says federal borrowing has climbed to $40T, adding pressure to an already strained economy.
Inflation lifted October rate-hike odds as high as 50% before they retreated, while spot Bitcoin ETFs recorded $150.5 million in outflows on Oct. 14.
Hougan’s view puts Bitcoin’s appeal on the same footing across sharply different economic outcomes, from persistent inflation to an AI-driven boom.
Long positions accounted for nearly all the losses, highlighting how leverage can amplify a brief Bitcoin price break into a sharp derivatives flush.
The forecast hinges on an unconfirmed Bitcoin settlement pilot by energy-exporting nations and a payments network, while BTC's chart remains below key resistance.
The selloff marks the index’s worst session since July 29, putting renewed inflation pressure back at the center of the market outlook.
Markets now price nearly twice the pre-release chance of an October hike, putting Treasury yields and dollar strength in focus ahead of the Fed meeting.