Bitcoin Price Drops Below $83K as Oil, Yields and Dollar Weigh on Crypto

Bitcoin has broken below $83,000, extending a sharp crypto selloff that has already erased hundreds of millions of dollars in leveraged bullish positions.

The move follows a deterioration in institutional flows as well. U.S. spot Bitcoin ETFs recorded $89.8 million of net outflows on Oct. 5 and another $3.2 million on Oct. 6, according to Farside Investors, removing one source of buying pressure just as macro conditions turned less favorable.

BTC had traded near $86,600 on Tuesday before the selloff accelerated, meaning the latest break has erased more than $3,500 from Bitcoin in roughly a day.

$550M Liquidation Wave Accelerates Bitcoin’s Drop

Leverage has magnified the decline.

Around $550 million in crypto positions were liquidated over 24 hours, with roughly $487 million coming from long positions as traders betting on higher prices were forced out.

Bitcoin had already fallen from about $85,341 to $83,790 in roughly 20 minutes during the first major liquidation wave.

That mechanism matters because forced liquidations can create additional selling regardless of whether holders actually want to exit.

<iframe src=”https://widgets.coincodex.com/w/db7fc8d9-02a3-4b3e-bb4e-3b818c3a30a7?site=coinpaper&mode=light” width=”100%” height=”420” frameborder=”0” referrerpolicy=”no-referrer-when-downgrade” style=”border:0;background:transparent;border-radius:0px;”></iframe>Oil, Treasury Yields and the Dollar Add Pressure

The selloff is not happening in isolation.

Brent crude moved above $101 as geopolitical tensions around the Strait of Hormuz intensified, while the 10-year Treasury yield climbed above 5.3% and the U.S. Dollar Index pushed above 102.

That reverses a recent macro tailwind. Bitcoin previously rallied toward $85,000 as falling oil prices eased pressure on bond yields.

Higher yields now make non-yielding speculative assets less attractive, while a stronger dollar tightens financial conditions across crypto.

$80K Becomes the Next Bitcoin Test

The $83,000 region had repeatedly acted as support after Bitcoin’s September recovery.

Our Bitcoin outlook identified the low-$80,000s as the floor beneath repeated failures around $87,000.

With $83,000 now broken, attention shifts toward $82,000 and then $80,000. Earlier technical analysis from FxPro similarly identified a sustained break below $83,000 as a potential path toward $80,000.