Bitcoin Falls Below $80,000 as $356 Million in Futures Positions Are Liquidated
Key Facts
Bitcoin fell below $80,000 in Asian trading on Thursday, October 29, reversing a two-day rebound, according to CoinDesk. It declined from more than $81,700 to about $79,800 during the move, the same source reported. The drop coincided with a wave of liquidations in crypto futures and pressure on technology stocks. The Federal Reserve’s decision to hold interest rates, with a divided vote, also shaped the market backdrop that day. EL7 data showed Bitcoin closed at $79,033.28 on October 29, compared with $81,343.50 the previous day.
Liquidations of cryptocurrency futures positions totaled $356 million over 24 hours, including $205 million in long positions, according to CoinDesk. The figures included $94 million in Bitcoin futures liquidations, versus $72 million in Ether futures over the same period. These figures describe positions forcibly closed in the futures market and do not represent spot trading alone. They also cover a 24-hour window, not one hour as stated in the initial draft. Meanwhile, the two U.S. spot Bitcoin funds received $137 million in inflows on Wednesday, marking a third consecutive day of inflows and bringing the three-day total to $423.7 million.
Pressure on crypto assets coincided with weakness in technology stocks after major companies reported results. Alphabet’s third-quarter revenue was $127.58 billion, below expectations of $127.93 billion, while operating income was $40.58 billion, compared with estimates of $43.16 billion, according to CoinDesk. Nasdaq-100 futures fell 1.1% on October 29 after Alphabet’s results came in below expectations, the same source reported. In South Korea, Samsung shares fell more than 5% after its semiconductor division’s results came in below analysts’ average estimates. The division posted operating profit of 106.5 trillion won in the three months ended September, below the average estimate of 108.5 trillion won.
The Federal Reserve kept its target interest-rate range at 3.75% to 4% in its October 28 decision, by a 10-2 vote, according to the central bank’s statement. The two dissenting members favored raising the range by a quarter of a percentage point. The Fed said “inflation remains elevated” and that the accumulation of more information would help the committee determine the appropriate policy stance to return inflation to its 2% target in a timely manner. The personal consumption expenditures price index rose 0.5% in September, after a 0.3% increase in August, while annual inflation was 3.6%, compared with 3.4% the previous month, according to Investing.com. The core index, which excludes food and energy, rose 0.3% monthly and 3.1% annually, compared with an annual increase of 3.0% in August.
The inflation data came alongside a preliminary reading showing U.S. gross domestic product grew at an annual rate of 3.4% in the third quarter, according to Investing.com. The report said CME FedWatch showed an 84.6% probability of an interest-rate hike in December. In later trading on October 29, Bitcoin rose 0.8% to $80,258.1 at 10:42 a.m. Eastern Time, according to Investing.com. That reflects the price at a specific time, while EL7 data recorded a daily close of $79,033.28 the same day. The Fed statement indicated that the next step remains tied to the committee’s assessment of the accumulated information in light of its 2% inflation target.