Bitcoin: Trump-Iran Tensions Send BTC Below $80,000

Bitcoin plunged to $79,220 on Binance this Saturday, October 24, before rebounding around $80,200. New threats from Donald Trump against Iran and the evacuation of American personnel in the Middle East accompanied this drop. The crypto market recorded about $841 million in liquidations over 24 hours, including $697 million in long positions. Bitcoin also remains below its 50-day moving average.

Bitcoin drops to $79,220 before rebounding

Saturday was a particularly volatile day for Bitcoin. On Binance, BTC touched 79,220.74 USDT on the BTC/USDT pair between 3 and 4 p.m. UTC. It then recovered some of its losses to return around $80,200, a rebound of over 1% from its low point.

A few days earlier, Bitcoin was still holding despite over a billion dollars entering ETFs in three sessions. The context changed on Friday. At a rally in Florida, Donald Trump mentioned the possibility of a new military operation against Iran, similar to the one carried out in February.

On Saturday, US authorities also started reducing staff at several embassies in the Middle East. A document from US intelligence services warned that Iran may have intensified its preparations for attacks against American nationals.

Markets had already begun to react. On Friday, the Dow Jones lost 652 points, while geopolitical tensions and worries about oil weighed on risky assets. Bitcoin had also closed Friday below its 50-day moving average, around $81,784 according to Bitcoin.com.

This technical line had regularly served as support since August. Saturday’s rebound allows BTC to regain the $80,000 level. However, it remains below its moving average.

More than $841 million in liquidations hit crypto

Traders using leverage suffered heavy losses. According to a CoinGlass report published on October 24, 228,165 positions were liquidated in 24 hours, totaling about $841 million in the crypto market.

Long positions account for most losses:

• $697 million in long positions, or 82.8% of the total.
• $144 million in short positions, or 17.2%.

Bitcoin represents about $234 million in liquidations. Ethereum follows with $183 million. The largest individual liquidation reported concerns a long ETH/USDT position worth $11.85 million on Binance.

These data replace the previous report of $495.74 million published Saturday morning, before the acceleration of the decline. Institutional investors had already begun to reduce their exposure. On Thursday, October 22, US Bitcoin ETFs recorded $635.49 million in net outflows, their largest withdrawal day since June 25.

BlackRock lost $254.05 million and Fidelity $217.46 million. Together, the two managers account for nearly 74% of the withdrawals. The turnaround was quick. Between Monday and Wednesday, ETFs had attracted about $1.07 billion. One session thus erased nearly 60% of these inflows.

Bitcoin regains $80,000, but the Fed approaches

The return above $80,000 brings some relief to buyers. However, it is not enough to erase the recent losses. The 50-day moving average, close to $81,784, now constitutes a first technical level to reclaim.

Analyst Benjamin Cowen is also watching the $83,000 level. According to his scenario, a weekly close below this level could extend the correction, especially if oil tensions and inflation concerns persist.

The US calendar is likely to sustain volatility. The Federal Reserve will meet on October 27-28. The next day, the US will release the September PCE index, a key inflation measure closely followed by the central bank.

A figure above expectations could heighten worries about interest rates. On-chain data offers other references. On October 21, Glassnode identified an important support zone between $80,000 and $81,500. Bitcoin just crossed this zone before regaining its lower threshold.

Lower down, Glassnode places the market’s average real cost price around $77,500, then that of short-term holders near $74,600. These levels do not guarantee a rebound. For now, Bitcoin has regained $80,000 after its drop to $79,220. The $841 million in liquidations nonetheless recall the violence of the movement. Between Iranian tensions, ETF outflows and the Fed decision, the upcoming sessions promise to be busy.