Key Insights
- Crypto market crash sends bitcoin price below $81K as Ethereum falls 6.1%.
- Fed interest-rate uncertainty weighed on cryptocurrencies as bitcoin and ether continued to fall.
- Bitcoin and Ether futures liquidations totaled nearly $483 million, including $286 million from ether.
The crypto market crash spread across major digital assets on Thursday as bitcoin and other crypto prices retreated. The decline followed Wednesday’s U.S. inflation report and coincided with withdrawals from spot Bitcoin and Ethereum funds.
Meanwhile, crypto liquidation data showed a concentration of forced closures among traders positioned for higher prices.
Crypto Market Crash Pushes Bitcoin Below $81,000
Amid the recent crypto market crash, Bitcoin price fell to $80,416.26 at the time of writing. Bitcoin fell 3.4% over the preceding 24 hours and 2.3% over the seven-day reporting period.
Meanwhile, Bitcoin’s daily trading volume reached $38.72 billion as crypto prices declined. Its market capitalization stood at approximately $1.62 trillion during the crypto market crash.
Alongside declining crypto prices, Ethereum traded at $2,349.77 after losing 6.1% during the previous 24 hours. The crypto also fell 7.4% over the seven-day period and recorded a daily trading volume of $18.84 billion.
Its larger percentage declines showed weaker performance than the Bitcoin price across both daily and weekly periods.
Beyond Bitcoin and Ethereum, XRP plunged 5.4% over 24 hours to $1.30, while its weekly loss topped 7%. Meanwhile, Solana traded at $101.79 following a 5.1% daily decline, and its seven-day loss stood at 10.2%. BNB fell 3.3% to $718.50, while TRON fell 1.1% to $0.3295 amid the latest crypto market retreat.
Inflation Pressures Started Off the Crypto Market Crash
Behind the crypto market crash, Wednesday’s inflation report showed stronger annual price growth than markets expected. September headline U.S. Consumer Price Index inflation reached 3.7%, exceeding forecasts of 3.6%. The reading marked the highest annual rate since May.
Meanwhile, monthly unadjusted consumer price inflation rose 0.6%, recording its largest increase since April 2026. The core Consumer Price Index, which excludes food and energy, climbed 2.6% from a year earlier. That exceeded expectations of 2.5% and marked the highest rate since June 2026.
Following those readings, uncertainty over the Federal Reserve’s next interest-rate decision weighed on markets on Thursday morning. Bitcoin’s price declined alongside other crypto prices as losses worsened during the session.
Spot ETF Withdrawals Accompany the Crypto Market Crash
Alongside inflation concerns and the crypto market crash, net withdrawals also affected spot cryptocurrency investment products. On October 14, spot Bitcoin funds recorded net outflows totaling $261.46 million during that reporting session. These funds hold Bitcoin directly.
Across the other fund group, spot Ethereum products recorded net outflows of $129.51 million during the same period. Withdrawals exceeded incoming investment across both fund groups, adding pressure during the crypto market crash.
Crypto Liquidation Reaches $927.30 Million
Meanwhile, the crypto liquidation snapshot showed $927.30 million in position closures across the previous 24 hours. Of that total, long positions accounted for $851.47 million, or about 91.8% of daily liquidations. Short positions contributed the remaining $75.83 million.
During the crypto market retreat, forced closures fell mainly on leveraged traders betting on higher prices. During the 12-hour reporting period, crypto liquidations totaled $639.03 million, about 69% of the daily figure.
Within that window, long positions contributed $589.03 million, while short positions accounted for $50 million. During the four-hour period, liquidations totaled $81.62 million, including $71.66 million in long positions and $9.95 million in short positions.
In the most recent one-hour period, crypto liquidations totaled $40.35 million. Long positions accounted for $36.61 million of that hour’s total, compared with $3.74 million in short positions. The one-hour, four-hour, and 12-hour figures form part of the broader 24-hour crypto liquidation window.
