Bitcoin slipped beneath the critical $83,000 threshold this morning, coinciding with the largest single-day net outflow from U.S. spot Bitcoin ETFs since June 25. Rising crude oil prices and U.S. Treasury yields further intensified selling pressures across the cryptocurrency market. According to CryptoAppsy data, Bitcoin was trading at $82,910 at the time of writing.
Significant Withdrawals from Leading ETFs
Trader T’s data from October 7 revealed a total outflow of $484.9 million from spot Bitcoin ETFs. The largest withdrawal, amounting to $207.7 million, occurred from BlackRock’s IBIT fund. Fidelity’s FBTC fund saw $105.1 million withdrawn, while Ark Invest’s ARKB fund faced a $101.7 million outflow. In contrast, Grayscale’s GBTC, Bitwise’s BITB, and VanEck’s HODL funds experienced net outflows of $39.3 million, $27.6 million, and $3.5 million, respectively.
Interestingly, no net inflow or outflow was recorded for the Grayscale Mini BTC, Morgan Stanley MSBT, Valkyrie BRRR, Franklin Templeton EZBC, Invesco BTCO, and WisdomTree BTCW funds. Bitcoin, meanwhile, closed the day at around $83,000, marking its lowest closing in the past 17 days and extending its decline to a third consecutive trading session.
Oil and Treasury Yields Weigh on Markets
During its latest drop, Bitcoin briefly fell below $82,200 before recovering to around $82,800. At this point, the 24-hour loss stood at 1.94%. FxPro had earlier commented that breaking decisively below $83,000 could reinstate control to sellers and swiftly drag the price down to $80,000.
The decline was accompanied by heightened macroeconomic and geopolitical risks. Reports suggesting the White House had asked the Pentagon to prepare a military strike plan against Iran pushed Brent crude oil up by approximately 2%, reaching $102 per barrel. Meanwhile, the U.S. 10-year Treasury yield climbed to 5.31%, nearing its highest level since 2002. Bitcoin’s losses over the last two sessions coincided with these increases in oil and bond yields. The retreat of Brent below $100 could alleviate some pressure on riskier assets.
The selloff extended to other major cryptocurrencies as well. XRP dropped nearly 4% to $1.42, Ethereum declined around 3% to $2,570, and Dogecoin’s value decreased by about 3%. The downturn in HYPE and Solana exceeded 2%. On the previous day, roughly $550 million worth of leveraged crypto positions were liquidated, predominantly involving long positions held in anticipation of rising prices.
Conversely, Infrastructure Capital Advisors takes a positive outlook on U.S. 10-year Treasuries amid expectations the Federal Reserve will implement just one more rate hike. According to the firm’s CEO and portfolio manager, these expectations align with the Fed’s dot plot forecast while falling short of market-priced increases. The executive noted that 10-year yields typically hover about 100 basis points above the terminal rate of Fed hikes. Weak housing data and subdued core inflation could prompt the Fed to pause hikes, potentially stabilizing the 10-year yield around 5%.
Bullish Support Amid Declines
Analyst Murphy suggests that buyers remained in the fray despite the falling prices. When Bitcoin fell to roughly $83,000, Binance‘s spot order book recorded liquidity depth of $80 million within 5% of the current price, surpassing levels seen during the September 10–16 correction and mirroring conditions from Bitcoin’s sideways movement in July.
Murphy observed that as prices decline, market-maker liquidity naturally shifts towards the buy side; investors are placing orders at lower prices, hoping to seize entry opportunities. Calculated from $83,000, the 5% depth on the buy side extends down to approximately $79,000. The substantial buying support in the $83,000–$79,000 range could mitigate the risk of breaching this level swiftly downward.
Additionally, the discrepancy between buy and sell volumes through market orders at Binance increasingly favored buying as the price fell. Murphy emphasized that the surge in aggressive buying amid declining aggressive selling does not necessarily imply a strong bearish outlook. Alongside pending buy orders, the rise in direct buying interest during the downturn also stands out.
