Why Is Crypto Down Today? Bitcoin Sell-Off Deepens as $771M in Leveraged Bets Get Wiped Out

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BTC price on Oct 13, 2026 at 7am EDT
$83,500 or above1.75x57%
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The crypto market crash persisted on October 13, with Bitcoin price falling below $82,000 and other digital currencies, including Ethereum, declining.

• Why Is Crypto Down Today? Bitcoin and Ethereum Lead the Market Sell-Off
• $771 Million in Crypto Liquidations: Why Bitcoin’s Sell-Off Accelerated
• Why Is Bitcoin Falling? Three Factors Behind the Crypto Crash
• Bitcoin ETF Outflows Hit $681 Million as Ethereum Funds Lose $542 Million
• US CPI Report on October 14: Could Inflation Trigger Another Bitcoin Sell-Off?
• Bitcoin Price Prediction: Is BTC Heading Toward $80,000 or Ready to Recover?
• Is the Crypto Market Crash a Buying Opportunity or the Start of a Deeper Correction?
• FAQ

For investors wondering why is crypto down today, rising liquidations and weakening demand for digital assets help explain the widespread selling pressure.

Bitcoin Price Drops Below $83,000 as Crypto Market Cap Shrinks

Bitcoin fell 2.8% over the last 24 hours to $81,382 around October 12 Other cryptocurrencies also fell recently as part of wider liquidations of leveraged positions

Bitcoin price today reflects continued weakness in the market after a recent decline. Other cryptocurrencies also experienced price declines. On October 13, Bitcoin remained under pressure, as

Ethereum, Solana, XRP and Zcash Record Steeper Losses

For traders asking why is Ethereum down today, the decline to $2,425 on Monday coincided with broader selling pressure affecting Solana, XRP▲$1.39 and other major cryptocurrencies. SOL▲$101.41 and XRP dropped by approximately 4.5% and 3.5%, respectively, in a single day, based on October 13 trading data.

Zcash was one of the biggest losers. ZEC▲$1,136.20’s price fell 10.4% to $1,149 during the initial market sell-off, according to data from The Block. ZEC’s decline suggests that other cryptocurrencies, in addition to Bitcoin, were hit hard by the sell-off.

Crypto Market Today: Biggest Gainers and Losers

The crypto market today remains dominated by declining prices. Among major cryptocurrencies tracked by The Economic Times on October 13, Zcash fell more than 9%, Hyperliquid lost approximately 6.3%, and Solana declined around 4.5%. 

Defensive assets performed poorly. Heloc’s price did not change. Bitcoin and TRON prices changed less than those of other assets. The figures underscore broad market declines, but differences exist among token prices.

$771 Million in Crypto Liquidations: Why Bitcoin’s Sell-Off Accelerated

Recent Bitcoin sell-off led to crypto derivatives liquidations. Crypto liquidations in the 24 hours through October 12, when Bitcoin price briefly dropped below $82,000, were $771 million, according to an October 13 article posted by news outlet The Block, citing figures from CoinGlass.

$685.6 Million in Long Positions Were Liquidated in 24 Hours

Bullish traders lost the most, suffering liquidation losses of $685.6 million on long positions, nearly 89% of all liquidation losses in the data. These data illustrate some of the dangers faced by leveraged bullish traders during Bitcoin’s recent decline.

Liquidations rose in the final 12 hours of the reporting window, totaling $631.8 million, including $600 million in long positions

How Leveraged Crypto Trading Turns a Price Drop Into a Sell-Off

Leverage allows traders to take larger positions in securities using less of their own capital or securities. Risks of leverage include forced sale, in which an exchange sells your securities on margin to avoid further losses if the value of your position declines.

Forced liquidations can contribute to price volatility by adding downside pressure to the market. A Crypto Briefing report noted that roughly $120 million in leveraged long positions were liquidated in 15 minutes when Bitcoin fell below $82,000.

Bitcoin Liquidation Levels: Where Could Forced Selling Continue?

Current Bitcoin liquidation levels indicate bearish Bitcoin market activity. An October 13 Bitcoin liquidations heatmap from Alpha Finance showed a concentration of about $98.6 million in long liquidations at $82,632. Other concentrations of liquidations included $81,946 and $81,604.

Additional clusters were found at $80,575 and $80,163. These numbers represent modeled liquidation exposure, not buy or sell orders by traders. Actual liquidation prices for traders will vary based on their leverage and other margin and collateral policies.

Why Is Bitcoin Falling? Three Factors Behind the Crypto Crash

The question of why is Bitcoin down today extends beyond leveraged liquidations. Other factors negatively affecting Bitcoin price include investment fund withdrawals, elevated US borrowing costs, and a sharp sell-off in Asian equity markets. Overall, market participants have been less willing to take risks.

Bitcoin ETF Outflows Signal Weaker Institutional Demand

Spot Bitcoin ETFs listed in the United States experienced $679 million in outflows in the week ending October 9, according to data from Farside Investors. Outflows in the latest week were the reverse of outflows in the previous week and indicate a lack of demand from institutions.

Recent Bitcoin ETF outflows continued on October 12, with $65.4 million in total withdrawals from BlackRock’s IBIT ETF on that day. Withdrawals from Bitcoin ETFs are not a good indicator of net demand trends among institutional investors.

US Treasury Yields and the Dollar Put Pressure on Risk Assets

Higher interest rates and a surging U.S. dollar have weighed on the crypto market. Bitcoin fell last week as higher Treasury yields and a rising dollar weighed on the market, according to a Barron’s report, amid fears of rising inflation and Fed action.

The dollar remained near an 18-month high on October 13. The US 10-year Treasury yield fell to about 5.19%. Reuters attributed the lower US yields in part to demand for safer assets.

South Korea’s Stock Market Sell-Off Adds to Crypto Market Anxiety

South Korea’s KOSPI index dropped 5.46% to 6,035.35 on October 13 due to weakness in chip stocks. Foreigners sold roughly $3.35 billion in South Korean stocks prompting emergency actions by the Korea Exchange to curb offshore sales of South Korean stocks

The decline reflected concerns about disappointing returns on investments in technologies like AI, as well as greater competition in the semiconductor industry. South Korea’s declines were part of broader declines in Asian tech stocks, according to a Reuters article. 

The latest crypto market news also reflects growing concerns about global risk appetite and uncertainty across financial markets. A direct causal connection between South Korea’s stock declines and Bitcoin declines has not been established.

Bitcoin ETF Outflows Hit $681 Million as Ethereum Funds Lose $542 Million

US spot Bitcoin and Ethereum ETFs saw net weekly outflows of $1.22 billion for the week ending October 9. SoSoValue data show net weekly outflows of $681.1 million for Bitcoin ETFs and net weekly outflows of $542.1 million for Ethereum ETFs. Net weekly outflows, including those for Solana ETFs, were approximately $1.25 billion.

Why Bitcoin Spot ETF Flows Matter for BTC Price

Spot Bitcoin ETFs provide institutional and retail investors with regulated access to Bitcoin. Net asset inflows to spot Bitcoin ETFs could increase demand for Bitcoin, and net asset outflows from these ETFs could increase selling pressure.

The latest Bitcoin ETF outflows ended three consecutive weeks of positive flows. October 7 accounted for $487.1 million in withdrawals, although funds briefly returned to positive territory on October 9 with $21.1 million in inflows. Total net assets stood at $105.84 billion, with cumulative inflows of $57.11 billion since launch. 

Ethereum ETF Outflows Extend as Solana Funds Turn Negative

Ethereum ETF outflows reached $542.1 million in the last week, a record redemptions week since January. The losing streak for Ethereum ETFs stretched to nine consecutive trading sessions, with redemptions since September 29 totaling $697.2 million. BlackRock’s ETHA fund accounted for most Ethereum ETF redemptions in the last week, with $477 million in redemptions.

Solana ETFs experienced investor outflows of $24.8 million last week and their first outflows in 14 weeks. Withdrawals from the Bitwise ETF BSOL accounted for $20.9 million, or 84%, of all Solana ETF outflows last week. Total investor inflows and outflows for Solana ETFs remained positive at $1.58 billion for the period.

US CPI Report on October 14: Could Inflation Trigger Another Bitcoin Sell-Off?

The September US consumer price index data release is scheduled for October 14 at 8:30 a.m. Eastern Time. The annual CPI is expected to increase to 3.7% in September from 3.4% in August, mainly as a result of rising energy costs. The September CPI release could influence expectations for the Federal Reserve’s next interest rate decision.

Hotter-Than-Expected CPI Could Push Bitcoin Lower

A higher inflation report, such as the core CPI report, can boost expectations of continued monetary tightening. Higher interest rates tend to increase demand for interest-bearing assets and reduce demand for other riskier investments, such as Bitcoin.

The connection between US CPI and Bitcoin is important for policy analysis related to current inflation. Most analysts expect the Federal Reserve to leave interest rates unchanged at its next meeting in October, although unexpectedly strong US CPI could affect their predictions.

Cooler Inflation Could Support a Bitcoin Price Recovery

Lower inflation readings can help ease concerns about further interest rate increases. Economists expect monthly gains in the core CPI of around 0.2%, suggesting little risk of broad-based increases in inflation despite rising energy costs.

Such an outcome could provide a crypto market recovery, particularly if rates on Treasury securities and the dollar fall. Inflation figures alone would not guarantee a sustained rebound.

How Federal Reserve Rate Expectations Affect Crypto Prices

Federal interest rate policy is an important part of the market outlook. The price of Fed futures indicates a 19% probability of a rate increase in October and an 85% probability of a rate increase in December.

Higher interest rates reduce available credit and make investment in risky assets less attractive. Expectations of lower interest rates can increase confidence among investors. Other market factors also influence Bitcoin price. 

Bitcoin Price Prediction: Is BTC Heading Toward $80,000 or Ready to Recover?

Bitcoin price remained low under bear market pressure before a US inflation report on October 14. Bitcoin was trading at about $82,705 on October 13

BTC price fell to close to $80,000 in the prior week. Short-term Bitcoin movements will depend mainly on bulls’ success in preventing further Bitcoin declines and increasing prices by breaking through resistance at $84,000.

Bitcoin Support Levels to Watch After the $83,000 Consolidation

Recent Bitcoin support levels are $82,500 and $81,300. Cointelegraph cited $82,500 as a weekly support level. Bitfinex said that $81,300 had been a resistance level and that buyers defended it on October 8. Bitcoin’s price briefly dipped to $80,347 before rising again.

A long period below $81,300 would suggest that price may not rebound and that the $80,000 mark is important again. The True Market Mean index published by Bitfinex at $77,400 could offer support if price continues to fall. A short-term price decline followed by a reversal would not necessarily be bearish confirmation.

What Bitcoin Needs to Reclaim to Confirm a Recovery

A constructive Bitcoin price prediction scenario is for the rise above $84,000 and hold near that price. Based on Bitfinex analyst data, Bitcoin’s primary‌ resistance level is between $84,000 and $84,500. Additional spot market buying would be needed to‌ sustain a higher Bitcoin price.

The Oct. 12 report from the exchange indicates several bullish factors, including consecutive positive‌ ETF sessions and stable derivatives positioning. Price movement above $84,500 could push the price as high‌ as $87,722. Price resistance is likely to come from bears and short sellers with large positions‌ at prices ranging from $86,500 to $87,300.

Bearish and Bullish Scenarios Ahead of the US CPI Release

The bearish scenario features higher than anticipated inflation and renewed ETF withdrawals and falls in BTC price below $81,300. Bitfinex analysts say these developments could negate recent price increases and uncover other risks of the downside. Base-case prices are forecast at $81,300-$84,500 before inflation data is released.

The bullish case is based on reduced inflation and rising demand for Bitcoin. Bitfinex cites a monthly rise of 0.2% or less in core CPI and falling real rates on government securities as factors that could push Bitcoin above $84,500. Further price gains above $84,500 would be bullish for longer-term Bitcoin price prediction, but both forecasts are speculative.

Is the Crypto Market Crash a Buying Opportunity or the Start of a Deeper Correction?

Recent declines have brought Bitcoin’s price near earlier prices at which traders bought. The crypto market recovery is uncertain, and analysts at Bitfinex say that more spot demand is needed to support a sustained rebound.

Signs That Selling Pressure Is Starting to Fade

Bitcoin’s recovery from an Oct. 8 low of $80,347 was encouraging. Bitfinex reported lower leverage rates in trades and narrower spreads between positive and negative financing rates on Bitcoin perpetual futures contracts. Lower leverage may reduce the risk of another round of Bitcoin liquidations.

Other developments on October 13 indicated that Bitcoin price rose from approximately $80,953 to $83,281 on October 13. Multiple tests of support at $80,000 suggest continued demand for Bitcoin, though experts caution that the correction has not been fully confirmed as over until Bitcoin rises above resistance levels.

Warning Signs That Bitcoin Could Fall Further

Ongoing redemptions from ETFs are a major problem. Bitfinex calculates that the total capital basis of spot Bitcoin ETF holders is $84,340. This could create downward pressure on the price around this level. Continued redemptions from spot Bitcoin ETFs could make a sustained recovery in Bitcoin price more difficult.

A prolonged drop below $81,300 would be more worrying. Bitfinex says $77,400 is the next support level for the ETF and other short-term traders if redemptions continue. Other risks include October 14 U.S. inflation data, with rising high inflation expectations weighing on the ETF if tighter monetary policy is anticipated. 

Why Is Bitcoin Down October 13th?

Bitcoin price dropped following $771 million in crypto liquidations that lowered demand for Bitcoin ETFs and other risky investments. Bitcoin price fell below $82,000 on October 12. Other investors were cautious in anticipation of an October 14 inflation report release in the United States.

Why Is the Entire Crypto Market Falling Today?

The crypto market crash has been driven by leveraged position closures, institutional fund withdrawals and macroeconomic uncertainty. High interest rates and a strong U.S. dollar are making investors less willing to take risks. Lower prices for stocks in Asian markets are among other factors reducing crypto prices.

Why Are Ethereum and Altcoins Falling More Than Bitcoin?

The question why are altcoins down today is partly related to the use of leverage with altcoins. Data from CoinMarketCap shows that speculative leverage has been shifting from Bitcoin to altcoins, increasing the risk of liquidation for some altcoins. Ethereum and Solana declined by a larger percentage than Bitcoin on October 12. XRP also declined more than Bitcoin.

Will Bitcoin Recover After the Crypto Sell-Off?

Recovery is possible, but bearish analysts are monitoring price levels at $86,500-87,000. Higher marks above these levels could indicate strong demand for Bitcoin, and additional bearish pressure below $83,000 could push the price down to $80,000. New CPI data releases could offer insight into the direction of a major price change.

Should You Buy Crypto During a Market Crash?

Buying during a bear market offers some advantages, but further declines in the market present risks for buyers of securities. 

A potential buyer of securities should consider his or her financial situation and other factors related to long-term investment plans instead of assuming that a decline will soon reverse. Information on ETF investments and inflation data, and other indicators, may show growing retail interest in some securities.

Source: bitcoinfoundation.org