Bitcoin dipped below $83,000 on September 29 as roughly $500 million in leveraged crypto positions were liquidated over 24 hours, affecting 129,197 traders. The selloff was triggered by macroeconomic pressures originating outside cryptocurrency markets.
The decline began on September 28 when oil markets moved sharply higher following geopolitical developments. Brent crude climbed above $100 per barrel, gaining 3.2% for the day. Rising oil prices raised inflation expectations, prompting traders to increase the probability of a Federal Reserve rate hike in October to 70.3%, up from 64.2% the previous day, according to CME Fedwatch data.
Treasury yields followed suit, with the 10-year yield climbing above 5.2% and the 30-year exceeding 5.3%. These rising yields pressured precious metals, with gold falling 3.4% on September 28 to $4,148.69 per ounce—its lowest level since August 5. The Kobeissi Letter characterized the gold decline as a 2.9-sigma move, ranking among the rarest single-day declines since 2006. Silver fell 4.31% to $61.53.
Crypto markets entered the period carrying significant leverage. Bitcoin had logged its best weekly close since January, and spot bitcoin exchange-traded funds attracted $2.39 billion inflows the prior week, their strongest performance since October of the previous year.
When bitcoin fell below $83,000 in Asian trading on September 29, the liquidations accelerated. Altcoins including QNT, ONDO, and NEAR experienced declines between 13% and 20%. Bitcoin subsequently recovered to near $83,250.
Derivatives data showed bitcoin futures open interest declined to 650,000 BTC, its lowest level since March. Funding rates turned negative across major exchanges, with 53.1% of taker volume positioned on the short side.
Some market participants appeared to be consolidating rather than exiting entirely. Binance recorded 13,800 BTC withdrawn in a single day, potentially indicating transfers to long-term storage.
