Bitcoin dropped toward $81,000 on October 15 as stronger-than-expected US inflation data reignited concerns about prolonged high interest rates. The decline was part of a broader sell-off across major cryptocurrencies, including Ethereum, XRP, and Solana, driven by liquidations in leveraged positions. Bitcoin was trading around $81,500, down about 2% over 24 hours, according to crypto platforms.
US consumer prices rose 3.7% year-on-year in September, exceeding expectations of 3.6%, while core inflation stood at 2.6%. This prompted investors to reassess the Federal Reserve's interest-rate outlook. Analysts like Purvang Mashru of BitDelta India noted that higher Treasury yields and a stronger dollar added pressure on cryptocurrencies. The weakness also coincided with a broader sell-off in global equities.
Other cryptocurrencies, including Ethereum, XRP, Solana, BNB, Dogecoin, and Cardano, also declined, with smaller tokens experiencing sharper losses. Riya Sehgal of Delta Exchange reported significant unwinding of leveraged long positions, with about $944 million in crypto liquidations over the preceding 24 hours. Avinash Shekhar of Pi42 highlighted a rise in Bitcoin open interest during the decline, signaling new positions being opened.
Institutional flows have been mixed, with spot Bitcoin ETF inflows despite weak retail sentiment. However, Vikram Subburaj of Giottus noted outflows from US spot Bitcoin ETFs on October 14. Nischal Shetty of WazirX observed inflows into both Bitcoin and Ethereum ETFs, suggesting that institutional demand was being offset by macroeconomic pressure, derivatives liquidations, and profit-taking.
Analysts are closely watching the $80,000-$81,500 region for signs of stabilization. Subburaj identified $81,300-$81,500 as a key support zone, with $80,000 as the next level to watch. A sustained break below $80,000 could expose Bitcoin to the $78,000-$79,500 range. On the upside, a recovery above $82,000-$83,200 could improve the short-term outlook. Investors are advised to exercise caution and monitor trading volumes and open interest.