Bitcoin Briefly Falls Below $80,000 as $404 Million in Crypto Long Positions Are Liquidated

Date: October 26, 2026
Category: Bitcoin | Crypto Market News | Liquidations

Bitcoin came under renewed selling pressure over the weekend, briefly dropping below the $80,000 mark and triggering a wave of leveraged-position liquidations across the cryptocurrency market. The sell-off wiped out approximately $404 million in long positions within four hours, highlighting the risks of using leverage during volatile market conditions.

According to CoinPaprika’s October 26 report, Bitcoin fell to approximately $79,280 on Saturday, October 24, before recovering above $80,000. Data cited from CoinGlass showed that total crypto liquidations reached approximately $436.44 million over a four-hour period, with $404.15 million attributed to traders betting on higher prices.

The downturn followed two consecutive days of net outflows from US spot Bitcoin exchange-traded funds (ETFs), adding to concerns about short-term investor demand. However, the figures do not establish that ETF withdrawals alone caused the price decline.

Key Highlights

• Bitcoin falls below $80,000: BTC briefly reached approximately $79,280 on October 24 before recovering.
• $404.15 million in long liquidations: Leveraged bullish positions across the crypto market accounted for most of the four-hour liquidation total.
• $815 million in 24-hour liquidations: More than 201,000 traders reportedly had positions liquidated during the measurement period.
• Bitcoin-specific liquidations: BTC positions accounted for approximately $158.45 million of the four-hour total.
• ETF outflows increase: US spot Bitcoin ETFs lost approximately $773 million across Thursday and Friday.
• Arthur Hayes reduces exposure: The BitMEX co-founder said he had closed the directional trading book at his family office, Maelstrom, citing macroeconomic and geopolitical uncertainty.

Bitcoin Price Drops Below $80,000 Before Recovering

Bitcoin's weekend decline followed a failed attempt to sustain its earlier recovery toward $85,000.

During Saturday's sell-off, BTC briefly dropped to approximately $79,280 at around 11:20 a.m. Eastern Time, according to market data cited by CoinPaprika and The Block. The price subsequently rebounded to approximately $80,138 by 1 p.m. ET.

The move placed renewed attention on the $80,000 level, which traders have been watching as an important psychological reference point.

By Sunday, CoinPaprika reported that Bitcoin had stabilised near $80,258, although it remained down approximately 1% over the preceding week. Cryptocurrency prices can change rapidly, so those figures should be understood as historical market snapshots rather than live prices.

The recovery above $80,000 offered some relief, but it did not establish that selling pressure had ended. The market's next direction will depend on whether buyers can sustain demand and absorb further selling.

$404 Million in Leveraged Long Positions Wiped Out

The most significant feature of the sell-off was the number of leveraged traders forced out of their positions.

CoinGlass data cited by The Block showed that approximately $436.44 million in cryptocurrency positions were liquidated over four hours on October 24. Of that amount, $404.15 million involved long positions—trades that benefit when prices rise.

This distinction is important: the $404 million figure covers long liquidations across the broader crypto market, not Bitcoin alone.

Bitcoin positions accounted for approximately $158.45 million of the four-hour total, while Ethereum positions accounted for around $136.72 million.

The liquidation wave occurred in concentrated bursts. Approximately $208.21 million in long positions were liquidated during a 15-minute period as Bitcoin fell from around $80,640 to $80,100. Another $131.17 million in long liquidations followed during a separate 15-minute period.

These rapid closures illustrate how leveraged trading can amplify a price move.

When traders borrow funds or use derivatives to increase their exposure, even a relatively modest market decline can push their positions below required margin levels. Exchanges may then close those positions automatically, potentially adding further selling pressure.

Total Crypto Liquidations Reach $815 Million

The four-hour liquidation wave formed part of a larger period of market turbulence.

According to the CoinGlass figures cited in the report, total cryptocurrency liquidations reached approximately $815.26 million over 24 hours, a reported increase of 218% from the previous day. More than 201,000 traders were affected during that period.

Long positions accounted for most of the losses as prices moved against traders expecting the market to rise.

The sharp increase in liquidations also coincided with a decline in crypto futures open interest, which fell approximately 2.2% to $140.10 billion over the same period.

Open interest measures the value of outstanding derivatives contracts that have not been closed or settled. A decline can reflect positions being closed, including through forced liquidations, although it does not by itself identify the direction of future prices.

The figures suggest that the market experienced a substantial reduction in leveraged exposure. Whether this leads to more stable trading or further volatility will depend on the next wave of buying and selling.

Bitcoin ETF Outflows Add to Market Concerns

The weekend decline followed a reversal in US spot Bitcoin ETF flows.

According to data cited by The Block from SoSoValue, the funds recorded approximately $635.49 million in net outflows on Thursday, October 22, followed by another $137.94 million on Friday, October 23.

Combined, the two sessions saw approximately $773.43 million in net withdrawals.

The outflows came after the ETFs had attracted approximately $1.078 billion in net inflows between Monday and Wednesday. Despite the late-week withdrawals, the funds finished the week with approximately $304.73 million in net inflows, according to the reported figures.

This sequence presents a mixed picture of institutional demand. The early-week inflows indicate renewed investor interest, while the subsequent withdrawals show that demand was not sustained throughout the week.

ETF flows are one indicator of investor sentiment, but they should not be interpreted in isolation. Bitcoin's price also responds to trading in spot markets, derivatives positioning, liquidity conditions, and macroeconomic developments.

The timing of the outflows before the weekend decline makes them relevant context, but the available data does not prove that ETF withdrawals directly caused the liquidation event.

Arthur Hayes Exits Maelstrom's Directional Trading Book

Market sentiment also attracted attention after Arthur Hayes, co-founder of BitMEX, said he had closed the directional trading book at Maelstrom, his family office.

In a social media post on October 24, Hayes wrote that he had sold his positions and cited uncertainty surrounding macroeconomic conditions and geopolitics. He said he intended to wait for a clearer signal before returning to the market.

On-chain trackers cited by CoinPaprika estimated the sales at approximately $22 million. The reported activity included around 6,400 ETH worth approximately $15.2 million, about 14 million ENA tokens valued at roughly $2.76 million, and 323,000 UNI tokens worth around $2.24 million, with the remainder spread across smaller positions.

Hayes' decision illustrates the caution some market participants are adopting amid heightened uncertainty. However, one investor's portfolio changes should not be treated as a reliable prediction of Bitcoin's next move.

The reported sales also do not establish that Hayes was responsible for the broader liquidation wave.

Why Liquidation Cascades Can Accelerate Bitcoin's Decline

A liquidation cascade occurs when an initial price move triggers forced closures of leveraged positions, potentially creating additional selling pressure and causing further positions to be liquidated.

For example, a trader holding a leveraged Bitcoin long may be forced out when the market falls far enough to breach the exchange's margin requirements. The forced closure can involve selling exposure into a declining market, adding momentum to the move.

When many traders hold similar positions around the same price levels, liquidations can occur rapidly and in clusters.

That dynamic helps explain why Bitcoin briefly dropped below $80,000 even as prices had recently attempted to recover. Once a key level breaks, highly leveraged positions can increase the speed and scale of the market reaction.

However, liquidations are not necessarily a signal of a prolonged bear market. They can remove excessive leverage from the system, after which prices may stabilise if fresh spot demand returns.

The direction that follows depends on market liquidity, investor positioning, and the broader economic environment.

What Happens Next for Bitcoin?

Bitcoin's near-term outlook depends on whether the market can maintain stability around the $80,000 area and whether fresh demand emerges after the weekend's forced closures.

Recovery scenario: BTC holds above the $80,000 level, ETF demand improves, and leveraged positioning becomes more balanced. A sustained recovery would require continued buying rather than a brief rebound.

Consolidation scenario: Bitcoin moves around the $80,000 area as investors assess institutional flows and broader market conditions. Reduced leverage could contribute to calmer trading, although volatility may persist.

Downside scenario: Bitcoin loses the $80,000 level again, ETF outflows continue, or renewed risk aversion triggers further selling. Under those circumstances, market participants may watch the recent low near $79,280 and nearby price levels for signs of stabilisation.

These scenarios are conditional, not price predictions. A single liquidation event cannot determine the market's longer-term direction.

Final Take

Bitcoin's brief fall below $80,000 triggered a significant liquidation wave, with approximately $404.15 million in leveraged long positions closed across the broader cryptocurrency market in four hours. Total crypto liquidations reached roughly $815 million over 24 hours, illustrating how quickly derivatives exposure can unwind during a sharp price move.

The sell-off also followed approximately $773 million in two-day net outflows from US spot Bitcoin ETFs, while Arthur Hayes' decision to exit Maelstrom's directional trading book added to the cautious market narrative.

Nevertheless, Bitcoin recovered above $80,000 after briefly reaching approximately $79,280. The rebound shows that the decline did not turn into a sustained break below the level during the period initially reported.

For now, investors will be watching whether ETF flows stabilise, whether Bitcoin can maintain its recovery, and whether leveraged positions rebuild. The key takeaway is that excessive leverage can intensify short-term volatility, but the liquidation figures alone do not confirm Bitcoin's next major trend.

Disclaimer: This article is for informational and educational purposes only. It does not constitute financial or investment advice or a recommendation to buy or sell Bitcoin or any other cryptocurrency. Digital assets are volatile, and investors can lose capital.