Crypto prices fell across the board on Thursday, with Bitcoin dropping to $81,000 and the total market capitalization of digital tokens declining by 3.7% over 24 hours to $2.7 trillion. Major altcoins also retreated sharply, including Raydium, Zcash, Lighter and Starknet, each down more than 12%.
Key takeaways
- Price move: Bitcoin fell to $81,000 and the broader crypto market cap slid 3.7% in 24 hours.
- Catalyst: Stronger-than-target U.S. inflation data raised expectations for additional Federal Reserve rate hikes.
- Risk transmission: A surge in leveraged liquidations intensified selling pressure.
- Demand pressure: Spot Bitcoin and Ethereum exchange-traded funds recorded notable outflows.
- Implication: Higher real-rate expectations and deleveraging dynamics may keep volatility elevated.
What drove the move
The selloff was linked to the U.S. inflation backdrop. According to the article, the Consumer Price Index rose 3.7% in September, moving further away from the Federal Reserve’s 2.0% target. The report also cited continued upward pressure in core inflation.
Investors appear to be treating the inflation print as a potential headwind for risk assets, including cryptocurrencies, because of its effect on interest-rate expectations. Data referenced in the piece indicated that the U.S. ten-year yield climbed to its highest level in decades, with the five-year and two-year yields also rising.
The report further attributed the inflation pressure to elevated energy costs amid the ongoing U.S.-Iran conflict and the Saudi Arabia–Houthi war, which have pushed oil higher. Brent remained above $100 during the week, while West Texas Intermediate rose to $95. Gasoline and diesel prices were also described as staying elevated.
According to the article, the market is increasingly pricing the possibility of a Federal Reserve rate hike later in the year, with odds by December exceeding 80% on Polymarket. In prior tightening or “higher-for-longer” rate regimes, Bitcoin and many altcoins have typically struggled as discount rates rise.
Liquidations added fuel to selling
Beyond macro pressures, the decline was amplified by deleveraging within crypto markets. The article said that 24-hour liquidations jumped 393% to more than $938 million, pointing to a broad flush of leveraged positions.
Ethereum liquidations accounted for $281 million, while Bitcoin liquidations were cited at $194 million. Solana, Zcash, Dogecoin and XRP were among the other tokens mentioned as seeing heavy liquidation activity.
Liquidations generally occur when leveraged traders face margin shortfalls after prices move against their positions. As forced closures can trigger additional selling, they often accelerate drawdowns during volatile sessions.
The selloff also coincided with declining market positioning. The report stated that 24-hour open interest fell 2.25% to $138 billion, which—when paired with rising liquidations—can signal reduced appetite to maintain leveraged exposure.
ETF flows suggest weaker spot demand
Another factor cited was weakening demand from investors through exchange-traded products. According to the article, spot Bitcoin ETFs saw outflows of more than $278 million, while Ethereum funds recorded outflows of $695 million.
It also noted that other altcoin ETFs—including those tied to Dogecoin, XRP, HYPE and Zcash—have experienced limited inflows during the month.
The report contrasted the current weakness with a stronger period earlier in the year. It said that over the prior three months, Bitcoin funds added more than $6 billion in assets, while Ethereum ETFs gained more than $3 billion. That shift from sustained inflows to outflows may reflect investors turning defensive and booking profits amid rising rate expectations.
What to watch next
With U.S. yields setting the tone and crypto markets experiencing rapid deleveraging, traders are likely to focus on follow-through in liquidations and whether ETF outflows persist. Investors may also look for additional guidance from the Federal Reserve and further U.S. macro data that could either reinforce or ease the pressure on bond yields. The next U.S. inflation and rates-related updates—and any subsequent changes in interest-rate pricing—are key catalysts to monitor in the near term.
