Bitcoin Drops to $80.5k on Spot ETFS Outflows, AI Stocks Rout
Bitcoin (BTC) price fell to $80,517, underperforming a slightly weaker broader market, driven mainly by a sharp reversal in institutional ETF demand and rising macro risk aversion.
BTC’s move reflects major outflows from spot Bitcoin ETFs and a broader retreat from risk assets, driven by concerns about AI infrastructure spending and geopolitical tensions.
U.S. spot Bitcoin ETFs saw $635 million in net outflows on October 23, their largest single-day withdrawal since late June. This reversed prior inflows and signalled weakening institutional demand.
The selling coincided with a broad retreat in technology stocks, driven by investor concerns over the profitability of massive AI infrastructure spending and comments from Nvidia’s CEO about a “scarcity of capital. Geopolitical tensions also contributed, as President Trump hinted at further action against Iran.
Bitcoin is acting as a risk-sensitive asset, and the loss of institutional buying support has removed a key price floor. Daily ETF flow data: sustained outflows would keep downward pressure on prices.
The decline triggered over $90 million in Bitcoin long liquidations in 24 hours, with longs making up 89% of the total. This forced selling accelerated the drop.
Technically, Bitcoin closed below its 50-day Simple Moving Average (near $81,784) for the first time since August, breaking a key support level that had contained price for over a month.
The market was over-leveraged to the upside. The break of a major trend indicator has shifted short-term sentiment to bearish. The immediate structure is bearish below the 50-day average at $81,784.
Traders said if Bitcoin holds above $80,000, it could attempt a rebound toward $82,000–$83,000. However, a decisive daily close below $80,000 would likely target the next significant support zone around $78,400.
The key near-term trigger is the Federal Reserve’s interest rate decision on October 28, followed by the PCE inflation report on October 29, which will shape macro sentiment.
Buyers must reclaim the 50-day average to invalidate the current downtrend. Price action at $80,000 and the Fed’s commentary on October 28 will be key to estimating the next move.
Bitcoin’s drop stems from institutional selling, a risk-off shift in traditional markets, and a painful unwind of bullish leverage. #Bitcoin Drops to $80.5k on Spot ETFS Outflows, AI Stocks Rout
