Bitcoin Price Touches $81K as Market-Wide Liquidations Cross $1 Billion

Bitcoin extended its decline for a fourth consecutive day, briefly dipping below $81,000 before recovering. The overall cryptocurrency market also suffered losses, with its total market capitalization falling beneath $2.8 trillion to a one-month low. Investors are now evaluating whether Bitcoin can withstand persistent ETF outflows, forced liquidations, and growing macroeconomic uncertainty.

The $80,000 threshold has become a crucial level for BTC, representing both a psychological support zone and a key boundary for its recent bullish trend. Although Bitcoin has not confirmed a breakdown below this mark, continued selling pressure has made it an increasingly important level to watch. Spot Bitcoin ETF activity remains a significant factor, but daily fund flows alone cannot ensure that prices will remain supported.

Demand for spot Bitcoin ETFs has weakened in recent sessions. After inflows slowed, the funds shifted to net outflows for four consecutive trading days, removing a source of buying demand that had previously helped support Bitcoin’s price.

Macroeconomic developments are adding to the market’s challenges. Rising U.S. Treasury yields, a stronger dollar, and heightened risk aversion are putting pressure on volatile assets as investors reconsider their exposure. These factors can weigh on Bitcoin even without a major negative development originating within the crypto sector.

The derivatives market has further amplified the downturn. More than 180,000 traders faced liquidations over a 24-hour period, pushing total cryptocurrency liquidations above $1 billion. Long positions accounted for approximately $940 million of the total.

As leveraged bullish trades were forcibly closed amid falling prices, liquidations accelerated the downward move. This highlights how excessive leverage can intensify market volatility and deepen losses beyond the selling taking place directly in spot markets.

Bitcoin Price Outlook: $80,000 Remains a Crucial Support Zone

Bitcoin recently dropped below $82,000 before reclaiming that level. However, its difficulty in maintaining upward momentum has raised questions about the durability of its bullish structure. The $80,000 mark is now a key threshold that could determine whether the ongoing correction becomes more severe.

A confirmed break below $80,000 could threaten the higher-low pattern that has remained in place since July. Further weakness could bring lower support zones into focus, although these levels represent potential areas where buyers might step in rather than predetermined price targets.

The sell-off has also affected other major cryptocurrencies. Leading digital assets recorded declines of approximately 3% to 5% over 24 hours, with Ethereum trading near $2,400, BNB around $720, and XRP close to $1.40. This broad-based decline points to reduced risk appetite across the cryptocurrency market rather than an isolated Bitcoin correction.

A sustained recovery above $82,000, alongside an improvement in ETF flows, could reduce near-term downside concerns. However, Bitcoin’s temporary rebound does not yet demonstrate that the market has stabilized or that institutional demand has returned.

The risk of a deeper decline would increase if Bitcoin decisively loses $80,000 while ETF outflows persist, leveraged long positions continue to unwind, Treasury yields climb, and the U.S. dollar strengthens further. If these pressures remain aligned, the $75,000 region could emerge as a potential support area.

For now, $80,000 remains an important level to defend rather than a confirmed breakdown point. Traders will be watching whether BTC can maintain its position above $82,000 and whether selling pressure begins to ease. Without stronger signs of stabilization, continued ETF outflows and leveraged liquidations could leave Bitcoin vulnerable to another test of its key support.