Key Insights:
- Fed rate-hike odds climbed to 60.2%, raising pressure on crypto markets and other risk assets.
- $386M in crypto positions were liquidated, including nearly $270M in longs.
- Bitcoin ETF outflows reached $166.8M over two sessions, signaling weaker demand.
Bitcoin (BTCUSD) extended its decline in crypto markets, trading at $77,770. BTC price was down from its high of $79,760 over nearly 14 hours.
The decline was attributed to a combination of factors, including a massive wave of liquidation in Bitcoin futures, a decline in demand for Bitcoin ETFs, profit-taking by holders, and rising macroeconomic fears.
All those factors pushed back crypto prices, bringing the Bitcoin price support level at $76K-$77K back into focus.
Macro Headwinds are Hitting Crypto Markets.
Renewed fears about inflation drove up market volatility. Geopolitical fears propelled oil prices over $100 a barrel, with Brent trading at $101.21, further fueling inflation concerns. CME’s FedWatch tool indicated a 60.2% chance for a Fed rate hike at the next meeting.
These developments added more pressure to risk assets. In summary, crypto markets were swept into a broader sell-off amid a hawkish rate outlook and commodity inflation concerns.
Liquidation Wave Hits Bitcoin Price
Bitcoin’s selloff triggered a huge liquidation event in crypto derivatives. CoinGlass data show that about $269.96 million in long and $116.62 million in short BTC futures positions were force-closed in a single day. That is roughly $386 million total.
This was the largest one-day liquidation in a week. Such forced selling drove Bitcoin price back toward its support zone near $77.9K. It also underscored the ongoing volatility across crypto markets.
The cascade of liquidations added to the downside momentum of crypto prices. Over-leveraged longs were automatically wiped out, and new bids failed to materialize.
ETF Outflows and Profit-Taking
Over Sept. 8–9, net outflows of $166.8 million hit U.S. spot Bitcoin ETFs, according to Farside data. This suggests that buyers in crypto markets pulled back significantly.
Meanwhile, long-term Bitcoin investors were selling off their positions, contributing to selling pressure. These long-term holders are selling off, which adds to the short-term correction.
Bitcoin Support at $76K Holds So Far
Despite the pullback, bulls can point to a key floor. Bitcoin price briefly retested the $77K–$78K range and even the $76K demand zone, which has historically seen heavy accumulation.
The $76K level has so far held as a key support area for Bitcoin. About 35% of the BTC supply was accumulated between $76K and $82K, putting a large share of the market’s cost basis within that range.
The focus now is whether buyers continue to defend $76K or a break below it opens the door to deeper losses.
