Bitcoin Drops Below ETF Cost Basis to $80,979 Following Higher-Than-Expected US Inflation Report
Bitcoin (BITSTAMP:BTCUSD) slid 3.3% to $80,979 after September US annual inflation rose to 3.7%, exceeding the 3.6% forecast. Core inflation also came in higher than expected at 2.6%. The price decline pushed the digital currency below the average purchase price of $81,500 paid by US spot exchange-traded funds, which recorded $261.5 million in net daily outflows.
The sharp drop triggered nearly $1 billion in crypto liquidations over 24 hours, with bullish long bets accounting for over 91% of the losses. Prior to the inflation data, large holders had built up their balances to 3.03 million BTC, their highest collective holdings since November 2025. However, recent selling by funds and heavy overhead supply have weighed on broader market momentum.
Traders are now watching key technical levels to determine market direction. A drop below $80,000 could trigger additional liquidations and push prices toward the $78,000 average cost basis for active investors. Conversely, a sustained move above $88,000 alongside renewed fund inflows would signal that buyers are absorbing current market supply.
Key points
- US annual inflation rose to 3.7% in September, beating expectations and driving Bitcoin down 3.3% to $80,979.
- The price drop pushed Bitcoin below the $81,500 average purchase price for US spot ETFs, which saw $261.5 million in daily outflows.
- Crypto market liquidations neared $1 billion over 24 hours, with bullish long positions representing 91.6% of total losses.
- Large crypto whales accumulated 3.03 million BTC ahead of the inflation report, reaching their highest holdings since November 2025.
- Major market support sits near $80,000, while resistance remains near $88,000.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
Why did Bitcoin price drop recently?
Bitcoin dropped after September US annual inflation reached 3.7%, beating forecasts and driving nearly $1 billion in leveraged crypto liquidations.
What is the key support level for Bitcoin?
Bitcoin faces immediate support around $80,000, with further support near $78,000 based on the average price paid by active investors.
How did US spot ETFs perform during the market pull-back?
US spot ETFs recorded $261.5 million in net outflows as Bitcoin's price dipped below their average cost basis of $81,500.