Bitcoin Price Falls Below $84,000 as $487 Million in Longs Liquidate

Bitcoin’s price dipped below $84,000 as leveraged bullish bets were unwound, with the vast majority of the damage concentrated into a brief period late Tuesday. The leading cryptocurrency reached a 24-hour low of $83,647.88 amid a cascade of long liquidations that triggered a broader crypto market selloff. Long positions accounted for nearly 97% of the liquidations during the most intense four-hour window, while wallets linked to the US government transferred $103 million in BTC and BNB ahead of the US midterms.

Also Read: Institutions Selling Gold For Bitcoin: Big Rally Incoming?

Bitcoin Price Falls as Long Liquidations Shake Crypto Markets

According to The Block, the world’s foremost digital asset declined 1.7% over a 24-hour period, changing hands at $84,071 as of 11:20 p.m. ET on Tuesday. Ethereum suffered a steeper decline, falling 3.3% to $2,612. At the time of publication, Bitcoin trades at $83,984 on CoinGecko, staying within a 24-hour span of $83,647.88 to $86,648.14. Despite the pullback, BTC maintains a 1.3% gain for the week.

Bitcoin Long Liquidations Drive The Crypto Market Selloff

Data from CoinGlass reveals $555.6 million in total crypto liquidations over 24 hours, with long positions responsible for $487.2 million of that sum. Approximately $429.8 million of these liquidations occurred within a four-hour span, which included roughly $415.3 million in longs.

A liquidation takes place when an exchange forcibly closes a trader’s position after losses deplete their margin. These mandatory liquidations can accelerate downward price action in an already declining market, causing minor drops to snowball once key thresholds are breached. Furthermore, public data generally underreports the actual figures, meaning total Bitcoin long liquidations may have exceeded recorded estimates.

Dominick John, an analyst at Zeus Research, stated:

“Bitcoin’s pullback appears primarily driven by profit-taking and forced long liquidations, following a build-up in open interest and funding rates that left the market vulnerable to deleveraging.”

The Crypto Fear & Greed Index registered at 62, remaining in “greed” territory though down from 67 the previous day. John noted that this softer sentiment, combined with modest underperformance from altcoins, contributed to the downward pressure.

US Government Wallets Move $103 Million Before Bitcoin Price Falls

On-chain monitoring tools detected transfers from US government-associated wallets hours prior to the price drop. These addresses transferred 833.6 BTC, valued at $71.56 million, to Coinbase Prime, alongside 40,285 BNB, worth approximately $31.63 million, sent to an unlabeled wallet.

Because Coinbase Prime manages both custody and execution services, the deposit could be intended for either function. No sale has been officially confirmed, and no direct correlation has been established between these transfers and the broader market selloff.

Analysts Weigh Midterms After The Bitcoin Price Falls

Jeff Ko, chief analyst at ViaBTC, offered the following perspective:

“Let’s not forget that BTC actually closed Q3 up roughly 40%, alongside $6.5 billion of spot ETF inflows. If the $82,000-$83,000 area continues to hold, I would still view the current price action as a pretty constructive consolidation following the September breakout.”

This highlights the $82,000–$83,000 range as a critical area of interest for Bitcoin. Additionally, 30-day charts from The Block indicate that both BTC and ETH remain in positive territory on a monthly basis.

With the US midterm elections approaching in November, CryptoQuant analysis shows that Bitcoin posted gains of 24.5%, 44.9%, and 92.3% during the 12-month periods following the 2014, 2018, and 2022 midterms, respectively. However, the 2018 cycle proved volatile initially, as Bitcoin slumped 45.5% in the month immediately following that election.

While three historical events represent a limited sample size, factors like borrowing costs and regulatory developments continue to play significant roles. For the time being, buyers will need to absorb the ongoing selling pressure, while traders monitor for future liquidation clusters, subsequent price dips, and any additional activity from government-linked wallets.