Bitcoin drops toward $80,000 as $1.16 billion in crypto liquidations hit the market

Bitcoin slides as $1.16 billion in leveraged bets get wiped out

Bitcoin dropped toward $80,000 on Oct. 8, 2026, as a sharp selloff triggered more than $1.16 billion in liquidations across the crypto derivatives market. Liquidations happen when leveraged traders lose money and exchanges automatically close their positions, adding more selling pressure to the market.

Nearly $1 billion of the liquidated amount came from bullish positions — trades betting that prices would rise. Only $108 million came from short positions, which bet on falling prices. About 166,769 traders were affected over a 24-hour period.

Bitcoin was trading around $80,744 at press time, down 3% over 24 hours and roughly 4% over the past week, according to CryptoSlate reporting data from CoinGlass. The decline extends a pullback from Bitcoin's recent attempt to reclaim $87,000.

Ethereum posts the heaviest liquidation losses

While Bitcoin's drop drew attention, Ethereum suffered the largest liquidation losses among major cryptocurrencies. About $324 million in Ethereum positions were liquidated over 24 hours, compared with $240 million in Bitcoin positions, CoinGlass data showed.

Ethereum fell below $2,500, down 4% over the same period, extending its weekly decline to about 9.3%. The single largest liquidation was an ETH-USD position worth roughly $20 million on the Hyperliquid platform.

Losses spread across other major digital assets as well. Solana fell 7.2% to approximately $108.61, XRP declined 5.7% to $1.35, BNB dropped 4.9%, and Zcash posted one of the steepest declines among large cryptocurrencies at 14%.

Short-term Bitcoin holders move coins to exchanges at a loss

On-chain data from CryptoQuant showed short-term Bitcoin holders transferred more than 50,000 BTC to exchanges at the 24-hour daily peak. Of that amount, more than 29,500 BTC — about 59% of the cohort's exchange inflows — was transferred at a loss.

CryptoQuant said the losses associated with those transfers were the largest recorded among short-term holders in nearly four months. Moving Bitcoin to exchanges can signal an intention to sell, though it does not guarantee immediate sales.

This marks a shift from earlier in the rally, when Glassnode reported that short-term holders accounted for about 86% of exchange inflows on Oct. 4 as Bitcoin closed above $85,000 — the highest share in a year. That earlier movement was driven by profit-taking; the current wave is driven by losses.

Key levels traders are watching

Glassnode identified a substantial cluster of resting buy orders between $81,000 and $81,250 on Binance's spot order book in its Oct. 7 analysis. Those orders had built up since Oct. 3 and represented the largest visible block of bids below Bitcoin's prevailing price at the time.

The liquidation cascade also intensified within a narrow window. CoinGlass recorded nearly $700 million in liquidations over a four-hour period, including $650 million in long positions.

Glassnode's Oct. 7 weekly report also flagged that a growing share of large-cap altcoins carried unusually elevated open interest relative to their market capitalization — the highest proportion since before the October 2025 crypto market crash. High open interest means many traders are holding leveraged positions, which can amplify losses if prices continue to fall.

What is confirmed

• $1.16 billion in crypto derivative positions were liquidated over 24 hours, with $1 billion in longs and $108 million in shorts.
• Bitcoin fell to around $80,744, down 3% in 24 hours and roughly 4% over the week.
• Ethereum liquidations totaled about $324 million, exceeding Bitcoin's $240 million.
• Over 50,000 BTC was moved to exchanges by short-term holders, with more than 29,500 BTC transferred at a loss.
• Glassnode noted elevated open interest in large-cap altcoins at its highest level since before October 2025.

What is still unclear

• It is not yet clear whether Bitcoin will find sufficient demand near $81,000 to absorb the selling pressure.
• The next major liquidation cluster is believed to sit near $75,000, but the full impact remains uncertain.
• Exchange deposits do not always result in immediate sales, so the actual selling pressure may differ from what the transfer data suggests.

Why this matters for crypto investors

The liquidation cascade shows how quickly leveraged positions can unwind during a decline. When exchanges force-close leveraged trades, they sell into an already weakening market, which can accelerate losses for other traders holding similar positions. The shift from profit-taking to loss-driven exchange inflows also signals that the market retreat is beginning to affect newer investors who bought during the recent rally.

Sources

• CryptoSlate