Over $2.4 billion in cryptocurrency positions were liquidated this week as Bitcoin declined from $85.7K to $82.5K. Most of the liquidations affected traders holding long positions betting prices would rise.
The sell-off occurred during a challenging period for broader markets, marked by climbing US Treasury yields above 5.3%, oil prices moving above $101 per barrel, and outflows from US spot Bitcoin ETFs reaching hundreds of millions of dollars on peak days.
Weekly price movement and liquidations
Early in October 2026, Bitcoin dropped from near $86,600 to intraday lows of approximately $80,350. The price recovered partially by October 9–10 to around $82,500.
Daily liquidations ranged between $696 million and over $1.2 billion. Long positions accounted for roughly 85% to 93% of liquidations across several days, with single sessions forcing the closure of between 100,000 and 180,000 trader positions.
The broader cryptocurrency market capitalization dropped roughly $110 billion within 36 hours during the downturn.
Market signals and on-chain activity
Open interest in futures and derivatives remained relatively stable near $150 billion, suggesting the liquidations represented a leverage flush rather than widespread capitulation. Short-term holders reportedly moved 55,600 BTC to exchanges at a loss during the decline.
Technical levels
Bitcoin's recovery settled near $82,500, aligning with identified technical support levels in the $81,000 to $84,000 range.
