Bitcoin Slips Under $80K As $1.5B Liquidations Strike
Key Summary
Bitcoin fell 8.25% to $76,861 Tuesday morning, sliding below the $80,000 threshold as $1.5B in leveraged long positions liquidated across derivatives platforms following a security breach at Binance. Federal Reserve data showed 10-year inflation-protected US Treasury yields declining 16 basis points to 2.60%, failing to provide the historical relief usually expected for non-yielding assets. Farside Investors reported $1.04B in net outflows across US spot Bitcoin exchange-traded funds over two trading sessions, led by heavy redemptions from BlackRock's iShares Bitcoin Trust.
Key Bullets
- Bitcoin fell 8.25% from $84,134 to $77,191 between October 21 and October 30 while real treasury yields dropped 16 basis points.
- Wintermute noted that the Binance security breach triggered $1.5 billion in total liquidations with long positions taking 85% of the losses.
- US spot Bitcoin exchange-traded funds recorded $1,041.8 million in net outflows across two consecutive trading sessions ending November 2.
- Traders must watch the 50-week moving average near $76,800 as the immediate downside support level following the failed recovery.
Derivatives Liquidations Sweep Major Exchanges
Bitcoin dropped 8.25% to $76,861 Tuesday morning after derivative traders absorbed $1.5B in forced liquidations across major perpetual swap venues. Trading desks at Wintermute confirmed that long positions accounted for approximately 85% of those total liquidations during the downturn. The sell-off intensified immediately following the security breach reported on Binance on October 29. Traders attempted to catch falling knives using leveraged perpetual futures rather than deploying clean spot capital.
Market participants watched leverage unwind rapidly across order books. Order-book depth monitored by exchange data feeds showed vanishing bids near the $80,000 psychological threshold. The liquidation cascade accelerated the downward momentum. Leveraged positions failed to find buyers as margin calls triggered automatic sell orders across multiple trading desks.
Treasury Yield Divergence Shocks Traders
Data published by the Federal Reserve indicated that yields on 10-year inflation-protected US Treasuries fell from 2.76% to 2.60% over a nine-day testing window. This 16-basis-point drop failed to spark the typical capital rotation into non-yielding assets such as Bitcoin. Technology equities mirrored the weakness as the Nasdaq-100 fell 4.82% over the same observation period. Traditional macro correlations broke down entirely.
Lower real borrowing costs usually reduce the opportunity cost of holding scarce digital assets. Selling pressure across equity and crypto markets overwhelmed that standard monetary transmission channel. Traders faced simultaneous drawdowns in risk assets and crypto portfolios. Macro conditions offered zero relief to digital asset books.
Spot ETF Outflows Drain Market Liquidity
US-listed spot Bitcoin exchange-traded funds recorded $1,041.8 million in net outflows across two trading sessions ending November 2, according to tracking figures from Farside Investors. BlackRock's iShares Bitcoin Trust drove the majority of the redemptions with $405.3M pulled out on November 2 alone. Fidelity's FBTC managed a modest $6.7M inflow that failed to dent the heavy institutional distribution.
Wintermute analysts warned that sustainable price discovery requires fresh spot-market allocations rather than derivative-driven bounce attempts. The 50-week moving average sitting near $76,800 represents the next major downside level to hold. Reclaiming the $80,000 handle requires sustained spot demand and a reversal of current ETF redemption trends.
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