Bitcoin (BTC-USD) prices tumbled more than 3% to $83,000 on Wednesday, sending crypto-related stocks lower as forced long liquidations added to a broader market sell-off.
The token hovered below $83,000 after a swift crypto sell-off triggered roughly $696 million in liquidations over 24 hours, with long-positioned traders bearing almost all of the losses, according to Coinglass data.
The vast majority of the damage occurred over a 12-hour window, driven primarily by forced unwinds of Ether (ETH-USD) and bitcoin positions.
The pullback follows bitcoin’s rally in early October to its highest price level since January.
“Trading volume remains unusually low” across spot exchanges and US ETFs compared with historical averages, said Glassnode head of research Frederik Theissen. “The market now leans on positioning more than on fresh demand.”
The researcher notes a surge in buying volume and ETF activity could push the token firmly back above $85,500 and open the door for a run toward $92,000.
.On the flip side, if prices drop below $81,000, it could trigger more forced liquidations.
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Crypto-related stocks also fell on Wednesday, led by declines in digital-asset Treasury giant Strategy (MSTR), trading platforms Coinbase (COIN) and Robinhood (HOOD), along with stablecoin provider Circle (CRCL).
The sell-off comes as the 10-year Treasury yield climbed to its highest level in 24 years, oil prices rose, and the broader market declined.
Rising bond yields prompt money to leave riskier assets, “and bitcoin feels it first,” Hunter Albright, chief revenue officer for SALT Lending, told Yahoo Finance.
However, Albright notes the US can’t carry its debt at these rates for long, creating a potential setup for intervention likely to send asset prices higher.
“The higher yields go, the closer we get to Washington stepping in, and stepping in means adding liquidity,” he added.
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Ines Ferre is a Senior Business Reporter for Yahoo Finance covering the US stock market, publicly traded companies, and commodities.
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