Bitcoin Falls Below $81K as Fed Rate Uncertainty Triggers Futures Liquidations

The Drop and Market Reaction

Bitcoin traded below $81,000 on Thursday, reversing recent gains after a stronger-than-expected U.S. inflation reading reignited expectations for additional Federal Reserve rate increases. According to CoinDesk, market-derived probabilities of a rate hike in October briefly reached nearly 50% following the report, though those bets have since moderated. The price weakness coincided with $483 million in liquidated long positions across Bitcoin and Ethereum futures markets, according to Crypto.news.

Analyst Outlook and Support Levels

Some analysts view the current price action as vulnerable to further downside. One analyst cited by Crypto.news warned of a potential drop to $65,000, though no methodology was provided for that target. The immediate technical question centers on whether the $80,000 level holds as support. The liquidation cascade suggests leveraged traders were caught offguard by the inflation data and its implications for monetary policy, adding technical downward pressure independent of longer-term fundamentals.

Why It Matters

For Traders

Sub-$81K price action and liquidation cascades can trigger stop-loss orders; monitor $80K support closely over the next 24-48 hours.