Bitcoin Drops Below $84,000 as Leverage and Outflows Pressure Market

Bitcoin (BTC) fell below $84,000 Tuesday night after a rapid reversal from the mid-$85,000 range accelerated as leveraged long positions were liquidated and bearish exposure increased.

BTC dropped from about $85,300 shortly before 9:50 p.m. ET Tuesday, Oct. 6 (01:50 UTC Wednesday) to roughly $83,550 around 10:05 p.m. ET (02:05 UTC), a decline of about $1,750 in 15 minutes.

Four newly created wallets deposited 1 million USDC into Hyperliquid before opening 40x short positions totaling 148.49 BTC, with a notional value of about $12.5 million. The timing did not establish that the wallets caused the decline or had inside information.

Bitcoin ETFs recorded one-day outflows of 1,059 BTC, valued at $91.72 million, on Oct. 6. Seven-day flows remained positive at 1,074 BTC, or about $93 million.

Separately, wallets linked to the U.S. government transferred 833.6 BTC, worth about $71.56 million, to Coinbase Prime. The on-chain transfer did not confirm a sale. The broader move triggered about $555.6 million in crypto liquidations over 24 hours, including $487.2 million in long positions.