Bitcoin slides toward $80K as crypto long liquidations top $1 billion

Bitcoin slid toward $80,000 Thursday afternoon, dropping more than 4% over the past 24 hours and nearing the level it reclaimed on September 20.

The largest crypto asset has faced sustained selling pressure since trading near $87,000 Tuesday. The decline wiped more than $7,000 from its price in roughly two days and coincided with steep losses across major tokens.

Ethereum fell more than 6% to around $2,400, while XRP declined roughly 6% to $1.32. Solana dropped nearly 9% to around $106.

The selloff triggered more than $1.1 billion in liquidations over 24 hours, according to CoinGlass data. Long positions accounted for approximately $1.05 billion, indicating that traders betting on further gains absorbed most of the losses.

The decline came against a backdrop of elevated oil prices and rising borrowing costs. Brent crude reached around $106 a barrel Thursday after remaining above $100 since late September, as the ongoing Iran war continued to cloud the energy outlook.

President Donald Trump said Thursday that the US was holding productive discussions with Iran and would not attack the country before the November 3 midterm elections. He nevertheless said the blockade would remain in place.

Treasury yields have climbed to their highest levels in 24 years as persistent inflation strengthens expectations for further Fed tightening. Investors are also demanding greater compensation for holding longer term debt, with the Treasury term premium reaching its highest level since 2014.

Minutes released Wednesday showed that most Fed officials considered another rate increase likely appropriate before year end. Policymakers cited energy costs and the AI investment boom as inflation risks, while stronger economic data and borrowing to finance AI infrastructure featured in discussions of higher Treasury yields.

The prospect of tighter monetary policy adds pressure to speculative assets by raising borrowing costs and increasing the appeal of interest bearing investments.

Crypto sentiment also weakened. CoinMarketCap’s Fear and Greed Index fell to 53, placing it in neutral territory after remaining in greed territory since late August.

Bitcoin was down roughly 3% for October despite the month’s historically strong performance. CoinGlass data dating to 2013 show an average October gain of more than 18%, making it the second strongest month behind November, whose average return is roughly 41%.