The sell-off followed the September Consumer Price Index report released on October 14. U.S. inflation rose to 3.7% year over year, compared with 3.4% in August. The hotter reading reduced hopes for near-term rate cuts.
Meanwhile, CME FedWatch data shows that the odds of a rate hike have risen to 44%, up from a low of 18%. On 16 September, the Fed raised rates by 0.25 points, marking its first rate hike since 2023.
Now, markets are watching the U.S. Producer Price Index (PPI) report due on October 15 for more clues about inflation ahead of the Fed’s October 27–28 meeting.
Nearly $1 Billion in Liquidations Hits Traders
The sharp price drop forced traders out of leveraged positions across major crypto exchanges. According to CoinGlass, 182,574 traders were liquidated in the past 24 hours, with total losses reaching $972.46 million.
Long positions accounted for $891.2 million, or 91.7% of all liquidations. These traders had bet on prices rising but faced heavy losses as Bitcoin fell.
Ethereum faced heavy liquidation with more than $293 million in liquidations as its price moved toward $2,390.
Bitcoin ETF Outflows Add to Selling Pressure
Institutional demand has also weakened. Spot Bitcoin ETFs recorded $261.4 million in net outflows on October 14, ending a three-week inflow streak. Since October 7, the funds have seen around $1.02 billion in net outflows.
Glassnode warned that Bitcoin faces weak buying demand as ETF selling and investors selling near their break-even prices. This leaves little room for fresh demand to support the price.
Can Bitcoin Hold the $80K Support?
Bitcoin’s immediate support lies between $80,000 and $80,500. Glassnode analysts noted that the largest cluster of buy orders on Binance’s spot market has shifted from $81,000 to $80,000.
However, $80,000 is below the U.S. spot Bitcoin ETF cost basis of around $81,500, which represents the average price these funds paid for their Bitcoin. Glassnode data suggests that a daily close below $80,000 could push the average ETF holder into a loss and weaken the nearest support level.
“If Bitcoin breaks below $80,000, the liquidation cluster just below that level and the True Market Mean near $78,000 could come into play.”
