Bitcoin Plummets Amid Massive Crypto Market Liquidations
- Bitcoin BTC -1.42% ’s price fell below $80,000, causing substantial market liquidations.
- Key assets affected include Bitcoin, Ethereum ETH -3.99% , and Solana SOL -1.87% .
- Bitcoin’s True Market Mean price hits a rare low level.
Bitcoin plummeted below $80,000 on October 2, 2023, as nearly $2.6 billion in crypto positions were liquidated within 24 hours globally.
The steep decline highlights vulnerabilities in the crypto market, shaking investor confidence with potential long-term consequences for Bitcoin and broader digital assets.
Bitcoin experienced a significant drop, falling below $80,000 and triggering extensive market liquidations. This decline, within a 24-hour period, led to the liquidation of $2.6 billion in crypto assets, indicating a turbulent market phase.
The market decline involved leading cryptocurrencies like Bitcoin, Ethereum, and Solana. Bitcoin plummeted to a local low before slightly recovering, causing a substantial impact on trader positions, primarily affecting long positions.
The immediate effects on the cryptocurrency market were severe, with substantial assets being dissolved. The sudden drop caused a wave of uncertainty across the market, affecting many investors’ portfolios significantly, forcing them to reevaluate strategies.
Financial implications include a noticeable shift in investor sentiment, with fear levels rising. The Crypto Fear and Greed Index dropped to 14, signaling heightened anxiety among traders and investors, which has been unheard of since December 2025.
Bitcoin’s drop below its True Market Mean highlights historical bearish trends, suggesting potential further declines unless new support forms. Expert insights indicate to expect further volatility, urging caution among traders considering long positions in this phase. Frank, a trader, noted that “Bitcoin falls below its True Market Mean price for the first time in 2.5 years. Last time this happened BTC was $29k.” – source
Historical analysis points to a potential pattern repeat, similar to previous low points in 2015, 2018, and 2022. Analysts emphasize the significance of the Relative Strength Index falling below 30 against gold, a historically bearish indicator.
