Bitcoin’s value dropped below $84,000 as leveraged bullish positions were unwound, with the bulk of the losses occurring during a brief late-Tuesday window. The leading cryptocurrency dipped to a 24-hour low of $83,647.88 amid escalating Bitcoin long liquidations, which helped trigger a broader selloff across the digital asset market. Long positions accounted for nearly 97% of liquidations throughout the most intense four-hour period, concurrently as wallets tied to the US government transferred $103 million in BTC and BNB ahead of the US midterms.
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Bitcoin Price Falls as Long Liquidations Shake Crypto Markets
The premier cryptocurrency declined 1.7% over a 24-hour period to trade at $84,071 as of 11:20 p.m. ET on Tuesday, according to data from The Block. Ethereum experienced a steeper decline, falling 3.3% to $2,612. At the time of publication, Bitcoin is trading at $83,984 on CoinGecko, remaining within a 24-hour spectrum between $83,647.88 and $86,648.14. Despite the recent pullback, BTC maintains a 1.3% gain for the week.
Bitcoin Long Liquidations Drive The Crypto Market Selloff
Figures from CoinGlass indicate that total cryptocurrency liquidations reached $555.6 million over 24 hours, with longs responsible for $487.2 million of that total. Approximately $429.8 million was wiped out in just four hours, encompassing roughly $415.3 million in long positions.
A liquidation occurs when an exchange forcibly liquidates a trader’s position after losses deplete their margin. These mandatory liquidations can accelerate downward price action during an active market decline, causing minor drops to snowball once key thresholds are breached. Furthermore, public metrics often underreport actual figures, meaning total Bitcoin long liquidations may exceed documented totals.
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, staying in “greed” territory though retreating from 67 the previous day. John noted that softer sentiment and mild underperformance among altcoins compounded the downward momentum.
US Government Wallets Move $103 Million Before Bitcoin Price Falls
Hours prior to the downward move, on-chain analytics detected transactions originating from US government-associated addresses. These wallets transferred 833.6 BTC, valued at $71.56 million, to Coinbase Prime, while 40,285 BNB, valued at approximately $31.63 million, was sent to an unlabelled wallet.
Because Coinbase Prime provides both custody and trading infrastructure, the deposit could serve either purpose. An actual sale has not been verified, and no direct connection has been established between these transfers and the broader market correction.
Analysts Weigh Midterms After The Bitcoin Price Falls
Jeff Ko, chief analyst at ViaBTC, offered the following 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 to $83,000 threshold as a critical area for Bitcoin. Additionally, 30-day charts from The Block indicate that both BTC and ETH remain positive on a monthly basis.
With US midterms approaching in November, data compiled by CryptoQuant shows that Bitcoin advanced 24.5%, 44.9%, and 92.3% during the 12-month periods following the 2014, 2018, and 2022 midterm elections, respectively. However, the aftermath of the 2018 vote proved challenging, as Bitcoin initially pulled back by 45.5% in the month immediately following the election.
While a three-election sample is relatively small, macroeconomic factors like borrowing costs and regulatory developments remain crucial. For the time being, buyers need to absorb the existing selling pressure, while market participants monitor for further liquidation spikes, subsequent price declines, and any additional activity from government-linked wallets.