Bitcoin Dips Under $84,000 Amid $487M in Long Liquidations

The price of Bitcoin dropped beneath $84,000 as leveraged bets anticipating further gains came undone, with the bulk of the market damage concentrated in a brief period late Tuesday. Bitcoin retreated to a 24-hour low of $83,647.88 as long liquidations mounted, triggering a broader crypto market selloff. Long positions accounted for nearly 97% of all liquidations during the most intense four-hour window, while wallets tied to the US government transferred $103 million in BTC and BNB ahead of the US midterms.

Also Read: Institutions Selling Gold For Bitcoin: Big Rally Incoming?

Bitcoin Price Falls as Long Liquidations Shake Crypto Markets

The premier cryptocurrency declined 1.7% over a 24-hour period, changing hands at $84,071 as of 11:20 p.m. ET on Tuesday, according to The Block. Ethereum experienced a steeper decline, losing 3.3% to settle at $2,612. At the time of publication, Bitcoin trades at $83,984 on CoinGecko, confined to a 24-hour span between $83,647.88 and $86,648.14. Despite this downward move, Bitcoin maintains a 1.3% weekly gain.

Bitcoin Long Liquidations Drive The Crypto Market Selloff

Data from CoinGlass indicates that total cryptocurrency liquidations reached $555.6 million over 24 hours, with longs responsible for $487.2 million of that sum. Approximately $429.8 million was wiped out in just four hours, which included roughly $415.3 million in long positions.

A liquidation occurs when a trading platform forcibly shuts down a user’s position because accumulated losses have depleted their margin. These forced liquidations can drive prices downward in an already declining market, causing a minor drop to cascade once Bitcoin slips past critical price thresholds. Furthermore, public data often underreports actual totals, meaning total long liquidations could exceed official figures.

Dominick John, an analyst at Zeus Research, stated:

“Bitcoin’s pullback appears primarily driven by profit-taking and forced long liquidations, following a build-up in open interest and funding rates that left the market vulnerable to deleveraging.”

The Crypto Fear & Greed Index registered at 62, keeping it in “greed” territory though down from 67 the previous day. John noted that softer sentiment, alongside modest underperformance from altcoins, contributed further downward pressure.

US Government Wallets Move $103 Million Before Bitcoin Price Falls

Hours prior to the price drop, on-chain tracking tools detected transactions originating from US government-associated wallets. These addresses transferred 833.6 BTC, valued at $71.56 million, to Coinbase Prime, alongside 40,285 BNB, worth roughly $31.63 million, sent to an unlabelled destination.

Because Coinbase Prime manages both custody and trading services, the deposit could be intended for either purpose. No sale has been officially confirmed, and no direct correlation has been established between these wallet movements and the broader market selloff.

Analysts Weigh Midterms After The Bitcoin Price Falls

Jeff Ko, chief analyst at ViaBTC, shared his perspective:

“Let’s not forget that BTC actually closed Q3 up roughly 40%, alongside $6.5 billion of spot ETF inflows. If the $82,000-$83,000 area continues to hold, I would still view the current price action as a pretty constructive consolidation following the September breakout.”

This highlights the $82,000–$83,000 bracket as a key zone of interest for Bitcoin. Additionally, 30-day charts from The Block indicate that both BTC and ETH remain in positive territory on a monthly basis.

With the US midterm elections approaching in November, CryptoQuant analysis reveals that Bitcoin posted gains of 24.5%, 44.9%, and 92.3% during the 12 months following the midterms in 2014, 2018, and 2022, respectively. However, the 2018 post-election period proved difficult, with Bitcoin initially tumbling 45.5% in the month immediately following that vote.

With only three prior elections to draw from, the dataset remains limited, and broader economic factors like borrowing costs and regulatory policies continue to influence the market. For the time being, market buyers need to absorb the ongoing selling pressure, while traders monitor future liquidation events, critical price floors, and any subsequent activity from government-linked wallets.

Frequently Asked Questions

What caused the recent drop in Bitcoin’s price?

Bitcoin’s price fell below $84,000 due to profit-taking, a build-up in open interest, and a massive wave of forced long liquidations that triggered a wider crypto market selloff.

How much was liquidated in the crypto market?

CoinGlass data reported $555.6 million in total crypto liquidations over a 24-hour window, with $487.2 million coming directly from long positions.

Did US government wallets sell any crypto?

US government-linked wallets transferred 833.6 BTC (worth $71.56 million) to Coinbase Prime and 40,285 BNB (worth $31.63 million) to an unlabeled wallet, but no sale has been officially confirmed.

What price support level are analysts watching?

Analysts are currently focusing on the $82,000 to $83,000 zone as a key area of support and constructive consolidation.

How does Bitcoin typically perform around US midterms?

Historical data from past midterms in 2014, 2018, and 2022 shows that Bitcoin posted significant gains in the 12 months following the elections, though short-term volatility and post-election drops have also occurred.