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

The value of Bitcoin dropped below $84,000 as leveraged bullish wagers came undone, with the bulk of the losses concentrated during a brief multi-hour window late Tuesday. Bitcoin touched a 24-hour low of $83,647.88 as long positions were forcibly closed, triggering a broader digital asset selloff. Long trades accounted for nearly 97% of liquidations during the most intense four-hour period, while wallets tied to the US government transferred $103 million in Bitcoin 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

The premier cryptocurrency declined 1.7% over a 24-hour period, changing hands at $84,071 as of 11:20 p.m. ET on Tuesday, according to data from The Block. Ethereum experienced steeper losses, tumbling 3.3% to reach $2,612. At the time of publication, Bitcoin trades at $83,984 on CoinGecko, confined within a 24-hour span of $83,647.88 to $86,648.14. Despite this recent downward correction, BTC maintains a 1.3% gain on a weekly basis.

Bitcoin Long Liquidations Drive The Crypto Market Selloff

Figures from CoinGlass indicate that total digital asset liquidations reached $555.6 million over 24 hours, with $487.2 million stemming from long positions alone. Approximately $429.8 million was wiped out in just four hours, encompassing roughly $415.3 million in bullish bets.

A liquidation occurs when a trading platform automatically shuts down a position because accumulated losses have depleted a trader’s margin. These involuntary sell-offs can accelerate downward momentum in an already declining market, causing prices to spiral once key thresholds are breached. Furthermore, public data generally undercounts real-world totals, suggesting that total Bitcoin long liquidations may have exceeded official reports.

Dominick John, an analyst at Zeus Research, noted:

“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 retreating from a reading of 67 the previous day. John added that softening sentiment and modest underperformance across altcoins compounded the downward pressure.

US Government Wallets Move $103 Million Before Bitcoin Price Falls

In the hours leading up to the price decline, on-chain monitoring tools detected movement from wallets associated with the US government. These wallets transferred 833.6 BTC, valued at $71.56 million, to Coinbase Prime, alongside 40,285 BNB—worth approximately $31.63 million—sent to an unidentified wallet address.

Because Coinbase Prime facilitates both custody and trading operations, the deposit could be intended for either purpose. At present, no sale has been verified, and there is no confirmed link between these blockchain transactions and the broader market selloff.

Analysts Weigh Midterms After The Bitcoin Price Falls

Jeff Ko, chief analyst at ViaBTC, shared his 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 to $83,000 region as a crucial area of interest for Bitcoin’s price trajectory. Additionally, 30-day charts from The Block indicate that both BTC and ETH remain in positive territory on a monthly scale.

With US midterm elections approaching in November, research from CryptoQuant shows that Bitcoin grew by 24.5%, 44.9%, and 92.3% during the 12 months following the midterms in 2014, 2018, and 2022, respectively. However, the 2018 post-election cycle was particularly volatile, seeing Bitcoin fall by 45.5% in the initial month following the vote.

While a three-election sample is relatively small, prevailing macroeconomic borrowing expenses and incoming cryptocurrency regulations continue to play vital roles. In the near term, market buyers will need to absorb incoming sell pressure, while participants monitor future liquidation clusters, upcoming price dips, and any subsequent activity from government-linked wallets.

?Frequently Asked Questions

01What caused the recent drop in Bitcoin’s price?

Bitcoin’s price dipped below $84,000 due to profit-taking, a spike in open interest, and a massive wave of forced long liquidations totaling hundreds of millions of dollars.

02What is a long liquidation?

A long liquidation occurs when an exchange automatically closes a leveraged bullish trading position because market losses have depleted the trader’s required margin.

03Did US government wallets sell their cryptocurrency?

Wallets linked to the US government transferred $103 million in BTC and BNB to custody and unlabelled addresses prior to the price drop, but no outright sales have been officially verified.