On October 7, Bitcoin broke through the $83,000 mark and dropped to $82,734 on Bitstamp. This is the lowest BTC level since the beginning of October. The decline occurred simultaneously with rising US government bond yields and a jump in oil prices.
What happened to Bitcoin
Over the day, BTC lost up to 2.8%. The price traded around $83,500 after an intraday high of $85,543. The resistance zone around $87,000 remained unbroken again. After several failed attempts to consolidate above this level, the market shifted to a decline.
The main factor came not from crypto
Pressure formed in global markets. The yield on 30-year US government bonds rose to 5.73%, the highest since 2002. The yield on 10-year notes reached approximately 5.36%. High yields make dollar-denominated debt instruments more attractive and simultaneously reduce demand for risky assets.
Oil increased the pressure
Brent rose above $102 per barrel. WTI traded around $91. The rise occurred after new statements regarding the Strait of Hormuz and growing concerns about oil supplies from the Middle East. Rising energy prices increase inflation risks, and this further supports high bond yields. For Bitcoin, this creates double pressure: expensive oil amplifies inflation concerns, and high yields reduce the appeal of risk.
It wasn't only cryptocurrencies falling
The pressure spread across several markets at once. The S&P 500 declined by approximately 0.6%. The Nasdaq lost about 0.71%. Gold dropped by approximately 1.53%, to $4,123 per ounce. For US indices, this was the first notable pullback after updating historical highs.
Liquidations amplified the move
Bitcoin's decline triggered a major wave of forced closures of leveraged positions. For BTC, about $143 million was liquidated over the day. Across the entire crypto market, the sum approached $969 million. Of that, approximately $644 million was in long positions. Liquidation occurs when the collateral is no longer sufficient to maintain a leveraged position, and the exchange closes it forcibly.
What is happening with open interest
Open interest in futures is also shrinking. Since September 22, the figure has declined from approximately $28.8 billion to $26.0 billion. This means that some speculative positions have already exited the market. But until open interest stabilizes, the risk of a new wave of liquidations remains.
ETFs could not stop the decline
On October 6, US spot Bitcoin ETFs received about $118.8 million in net inflow. A day earlier, the category showed an outflow. Despite the return of institutional demand, this was not enough to keep the price above $83,000. This shows that ETF inflows alone do not create guaranteed support when the market simultaneously faces rising yields, geopolitics, and a cascade of liquidations.
What's next
The main reference point now is the stabilization of open interest and the cessation of major liquidations. Above, the key zone remains $86,000-87,000. Below, the market will be watching whether the area around $82,700-83,000 holds. As long as US yields and oil remain high, external pressure on Bitcoin persists.
Did you catch this dump to $82,700?
A move of nearly 3% in a day shows how quickly the market can travel several thousand dollars with high leverage volume. But the result of a trade depends not only on direction, but also on the available trading notional. Prop trading allows you to pass a challenge and gain access to a company account without needing to use comparable personal capital. It's better to understand the mechanics in advance, while the market digests the move in oil, bonds, and cryptocurrencies.