Bitcoin dropped below $82,000 to an intraday low of $80,836 during a late Wednesday sell-off, capping a nearly 4% daily loss and halting a recent two-week high rally.
Bitcoin tumbled below $82,000 Wednesday, just hours after touching two-week highs during a market-wide rally. The retreat sparked debate over a disconnect between growing exchange-traded fund (ETF) inflows and bitcoin’s price after this week’s three-day streak of investments failed to spur a significant gain.
Market data shows bitcoin initially held well above $84,000 after breaching the threshold. However, the cryptocurrency began tumbling late Wednesday during a market-wide sell-off, dipping below $82,000 by 5 a.m. ET Thursday. While the decline slowed, bitcoin continued to slide, trading near $81,200.
Despite a brief recovery attempt, the cryptocurrency hit resistance above $81,500, eventually tumbling to an intraday low of $80,836. Bitcoin was recently trading near $81,300 at publication time.
Meanwhile, bitcoin’s price reversal proved catastrophic for traders betting long on the cryptocurrency. As shown by Coinglass data , long bitcoin bets liquidated reached $135 million over the last 24 hours, a massive increase from the approximately $5 million in long bets liquidated a day earlier. Shorts liquidated topped $5 million, bringing total liquidations on bitcoin to $140 million.
Across the broader cryptocurrency economy, long bets liquidated topped $412 million, while short bets wiped out surpassed $43 million.
Bitcoin’s sideways price action Thursday came even as spot bitcoin ETFs drew more than $1 billion in inflows over the prior three days. That followed a stretch of sustained outflows , during which the cryptocurrency held barely above $80,000.
Commenting on the apparent disconnect between ETF flows and bitcoin price, Bitfinex analysts suggested these now “act as a critical ‘quality filter’ distinguishing genuine, spot-led breakouts from fragile, debt-fueled spikes.”
In a note on the flow-versus-price dynamic, Bitfinex analysts noted that Oct. 19’s $526.7 million in net ETF inflows marked a significant rise in spot demand, yet prices remained tightly range-bound between $81,724 and $83,470. The analysts emphasized that the consolidation structure sits below the average ETF cohort cost basis of $84,333, adding that consecutive sessions of institutional inflows remain necessary to break above the $84,000 resistance level.
“Initial tests of the upper boundary may, however, encounter selling pressure as short-term traders take profits… Short-Term Holder Spent Output Profit Ratio (STH-SOPR) stands near 1.003, signaling modest profit realization among recent buyers. Supply in profit sits at 70%, relative to the long-term baseline of 75%.”
The analysts also noted that a second session of similar inflow size is required to confirm demand, pointing to potential targets of $84,100 to $86,100—where 1.08 million BTC are held at a loss—and eventually $87,197. “The hand-off from dip buyers to new buyers is what raises the floor without lifting the ceiling,” they said.
Macroeconomic trends could also override institutional flows, Bitfinex analysts warned, highlighting a strong correlation between digital assets and equity market trends, particularly within tech and AI sectors. With bitcoin’s 20-day Nasdaq-100 correlation standing at 0.78, guidance on AI capital spending could dictate whether the tech sell-off resumes ahead of the Federal Reserve’s Oct. 28 policy update.
Finally, the analysts cautioned that ETF flows are currently preventing leveraged breakouts. Bitfinex identified a daily close above $84,400 alongside a second ETF inflow exceeding $300 million, with funding rates falling toward 3% and flat open interest, as the ideal setup for a genuine breakout.
Conversely, a close above that level with funding near 9% would represent a leveraged move prone to being sold off, repeating the unwind patterns observed Oct. 8 and Oct. 15.
Bitcoin's price punched through $84,000 on Wednesday, catching bearish traders off guard and helping wipe out $188 million in short…
