Bitcoin broke below the $81,000 threshold on Thursday, falling to an intraday low near $80,500 as a marketwide selloff swept across cryptocurrency assets. The decline wiped significant value from bitcoin's market capitalization, which fell from $1.74 trillion on Monday to just above $1.62 trillion.
The price retreat coincided with a surge in Brent crude oil to $105 per barrel following reports of attacks on shipping vessels in the Strait of Hormuz and U.S. considerations of resuming strikes on Iranian targets. Bitcoin shed more than $1,500 in a single hour during the decline, after struggling to maintain the $83,000 support level established late Tuesday.
The cryptocurrency has declined approximately 3% from its October 1 opening price of more than $84,200 and has been under pressure since failing to breach $87,000 on October 6.
Liquidations Reach $1.1 Billion
The downturn triggered significant liquidations across the crypto market. According to Coinglass data, approximately $270 million in long positions on bitcoin were liquidated, while total crypto liquidations reached $1.14 billion. Ether led individual asset liquidations with $333 million wiped out.
Market Catalysts and Speculation
While Middle East tensions provided one potential catalyst for the selloff, speculation on social media focused on a possible sale of bitcoin seized from the Bitfinex hacker, which the U.S. government recently moved to Coinbase Prime. Analysts noted, however, that there is no evidence the $1 billion in bitcoin has actually been sold.
Some market observers warned of further declines. According to social media commentary, bitcoin could drop to $78,000 if key support levels break, with potential further losses to $75,000 before a strong uptrend materializes. The $81,500 to $82,000 level was identified as a critical support zone.
