Bitcoin staged a rapid recovery Thursday, climbing back above $82,000 after a brief dip below $80,000. Despite the extreme price swings, the cryptocurrency was only marginally higher than 24 hours earlier, with its market capitalization remaining near $1.65 trillion.
The price decline began following the release of hotter-than-expected U.S. inflation data, which sent Bitcoin tumbling from $84,000 to the low $82,000 range. Mounting selling pressure on Wednesday had already driven the price below its $82,000 support level. After spending several hours struggling to break back above that threshold, Bitcoin fell to under $80,200 near midnight.
Over the next six hours, Bitcoin traded between $80,500 and $81,500 as traders digested implications of the inflation report. A second wave of selling drove the price to an intraday low of $79,694 shortly before 4 a.m. ET. The rebound followed quickly, with Bitcoin rallying to $82,520 before consolidating above $82,000 by 1 p.m. ET.
The volatility hit long traders significantly harder than short sellers. According to Coinglass data, approximately $172 million in long Bitcoin positions were liquidated over the 24-hour period, compared with $42 million in short positions. Across the broader crypto market, total leveraged liquidations exceeded $929 million, with long liquidations accounting for more than $777 million.
Market analysts noted that the September Consumer Price Index report, which showed higher-than-expected inflation, raised questions about sustained price declines and increased the likelihood of further Federal Reserve intervention. Bitunix analysts warned that if Treasury yields and the dollar continue to strengthen, crypto markets could remain under pressure from deleveraging.
