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# Bitcoin Drops Below $80,000 as ETF Inflows Reverse
- URL: https://espresso.cafecito.tech/bitcoin-below-80k-etf-outflows-long-liquidations/
- Published: 2026-10-27T12:30:50.000Z
- Updated: 2026-10-27T12:30:50.000Z
- Description: Bitcoin fell below $80,000 on Oct 24 as US spot ETFs shed about $773.5M over two sessions, transmitting redemptions into spot selling while mostly long positions unwound. The week ending Oct 23 still finished roughly $301.2M net positive, so whether ETF demand returns remains open.
- Author: Barista @ Cafecito
- Tags: Business & Markets, Business, Markets, Finance, Monetary Policy, #cortado-01d63890-b600-5964-aa71-6a82be793a12

Bitcoin traded near $79,859 on October 26, after slipping below $80,000 on October 24, with reported intraday lows between roughly $79,107 and $79,263 (247wallst.com; blockonomi.com; altcoinbuzz.io). Exposure sits with holders funding US spot Bitcoin ETFs, calendar-spread derivatives traders, and leveraged longs carried above spot.

The proximate trigger was a two-session reversal in ETF demand, not a change in Bitcoin's supply. US spot Bitcoin ETFs shed roughly $635.5 million on October 22 and $137.9 million on October 23 — about $773.5 million combined (crypto.news; coinpaper.com; altcoinbuzz.io). That followed $1.0747 billion of inflows Monday through Wednesday, leaving the week ending October 23 net positive by roughly $301.2 million (bitcoinfoundation.org; financefeeds.com).

### Redemptions, forced closures, and the flow arithmetic

ETF redemptions require the fund to sell spot BTC, transmitting withdrawals into market orders. BlackRock's IBIT posted a $254.1 million outflow on October 22 and a further $110.3 million on October 23; Fidelity's FBTC fell $217.5 million on October 22 and $31.8 million on October 23 (247wallst.com). Coinbase Institutional characterized ETFs as the market's primary demand source as traditional buyers lost influence, citing negative Coinbase premiums in October (cointribune.com).

That selling met a leveraged book. Reported liquidation totals vary by outlet and window — roughly $404 million, $670 million, and $834 million across different 24-hour measures — with long positions accounting for 83% to 95% of closures in each (financefeeds.com; cryptopotato.com; altcoinbuzz.io). A separate CoinGlass window to about 09:30 UTC+8 on October 23 put 24-hour liquidations at $332.79 million, of which longs were $277.60 million, or 83.4%, across 80,154 traders (altcoinbuzz.io). These totals are per-report and not reconciled with one another.

- Oct 22: US spot Bitcoin ETF outflow $635.5M; IBIT −$254.1M, FBTC −$217.5M
- Oct 23: Additional $137.9M exits; IBIT −$110.3M, FBTC −$31.8M; 24h liquidations $332.8M (83.4% long)
- Oct 24: BTC breaks below $80,000; reported 24h liquidations $404M–$834M, mostly longs
- Oct 26: BTC near $79,859

A cryptoslate.com account from October 8 separately described a $1.16 billion liquidation day with Bitcoin near $80,000 on a different date, illustrating how sensitive these totals are to the window measured.

### Cost basis, amplifiers, and what is not established

Glassnode placed recent buying between $80,000 and $81,500 and a market-wide reference near $77,600 in October 21 research, while Coinbase Institutional flagged the $80,000–$82,000 zone as overlapping ETF cost basis near $81,300 and the 50-day average near $81,700 (crypto.news; coinpaper.com). Coinbase warned that losing $80,000 could expose $73,000–$75,000; Peter Schiff separately called $75,000 the next level (coinpaper.com; blockonomi.com). These are attributed projections, not established outcomes.

Macro and geopolitical conditions acted as amplifiers rather than proven causes: Brent crude above $117 a barrel, the 10-year Treasury yield moving between about 4.96% and 5.3% across reports, September CPI of 3.7% year over year, and a Fed decision scheduled for October 27–28 (e27.co; 247wallst.com; crypto.news). 247wallst.com separately measured Bitcoin's 21-day correlation to Invesco QQQ at 0.67 — a correlation, not evidence of a common driver. Draft assertions about Iran-related tensions and embassy evacuations, and about 30-day relative performance versus gold and Ethereum, are not carried here because the supplied evidence set does not establish them.

### Outlook and the decisive unknowns

The week's net stayed positive because early inflows exceeded the two-day exit (bitcoinfoundation.org; news.leodex.io). Bitcoin traded approximately 36% below its October 6 record of $126,080 and 2.9% below its 20-day average (news.leodex.io; 247wallst.com).

The Fed decision is the near-term test; reports cited expectations of a hold with December hike odds between 68% and 79% (cointelegraph.com; cryptopolitan.com). Whether ETF flows turn positive again after October 23, and whether spot holds $80,000 or $77,600, remains unresolved. No report in this window confirms deposit, payment, or credit-system stress beyond the crypto market itself.

Separately, stablecoin market capitalization fell $12.73 billion from May 22 through late October, with USDC shedding $4.69 billion over 30 days and accounting for about 80% of a $5.82 billion net decline among 13 tokens, while Falcon's USDf rose $511.16 million (news.bitcoin.com). The same account notes declining stablecoin supply may signal reduced buying power, but cautions that disappearing stablecoins may not equal an exit from the market.

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