Bitcoin Holds Near $85,500 After Liquidations and ETF Outflows

Bitcoin (BTC) is trading near $85,595 on Tuesday, showing little movement after a failed attempt to surpass $87,000. The past 24 hours saw over $172 million in leveraged crypto positions liquidated, with long positions losing $101 million and short positions $71 million. Traders are now focused on the Federal Reserve’s meeting minutes, set to be released Wednesday, for potential market direction.

The cryptocurrency’s price fluctuated between $85,009 and $86,662 over the last day, maintaining a market capitalization of $1.72 trillion. Spot Bitcoin ETFs experienced a net outflow of $89.8 million on October 5, reversing a $189.9 million inflow from October 2. BlackRock’s iShares Bitcoin Trust (IBIT) was the sole major fund with inflows, while ARK 21Shares Bitcoin ETF (ARKB) and Fidelity Wise Origin Bitcoin Fund (FBTC) saw significant outflows.

Strategy, formerly known as MicroStrategy, purchased 334 BTC for approximately $28.7 million between October 1 and October 4, bringing its total holdings to 848,000 BTC. The company’s average cost per coin is around $75,437, leaving its holdings in unrealized profit despite the latest batch being bought slightly above the current price.

The U.S. economy added only 29,000 jobs in September, reducing the likelihood of another interest rate hike by the Federal Reserve. The 10-year U.S. Treasury yield remains high, potentially impacting Bitcoin’s price due to reduced demand for non-interest-bearing assets. Key support levels for Bitcoin are at $85,000 to $85,500, with resistance at $86,700 to $87,000.