The cryptocurrency market extended its decline on Thursday after heavy liquidations, outflows from US spot Bitcoin and Ether exchange-traded funds, and renewed concerns that interest rates could remain elevated.
Bitcoin fell as much as 4.2% from its Tuesday high, while Ether and XRP recorded even steeper declines as selling spread across most major digital assets.
More than $651 million worth of leveraged long positions were liquidated, adding to downward pressure as traders who had positioned for higher cryptocurrency prices were forced out of the market.
Bitcoin Falls From $86,592 to Below $83,000
Bitcoin reached a high of $86,592 on Tuesday afternoon, October 6, 2026, before falling to around $82,952, representing a decline of approximately 4.2%.
By Thursday morning, the world’s largest cryptocurrency had recovered slightly to around $83,401, but remained approximately 2.4% lower over the previous 24 hours.
Despite the sharp short-term decline, Bitcoin remained relatively stable on a weekly basis.
The cryptocurrency was only around 0.25% lower over seven days, suggesting that the latest sell-off has largely returned prices to levels seen the previous week rather than triggering a major market collapse.
Ether, XRP and Solana Also Decline
Selling pressure was widespread across the cryptocurrency market.
Ether traded at approximately $2,582 on Thursday morning, down 4.1% over 24 hours.
The cryptocurrency had fallen as much as 6.3% from its recent high to Wednesday evening’s low, according to hourly CoinGecko prices.
XRP suffered an even steeper decline, falling as much as 7.1% from high to low before trading near $1.43, down about 4.6% over 24 hours.
Solana changed hands at approximately $116.63, representing a decline of 3.1%.
The total cryptocurrency market capitalisation stood at around $2.85 trillion, according to CoinGecko.
$651 Million in Long Positions Liquidated
One of the main drivers of the sell-off was the forced liquidation of leveraged cryptocurrency positions.
More than $651 million in long positions were closed as prices moved lower.
Long traders use leverage when they expect cryptocurrency prices to rise. However, when markets fall sharply, exchanges may automatically close those positions if traders no longer have enough collateral to maintain them.
Large waves of liquidations can accelerate market declines because forced closures generate additional selling pressure.
The latest liquidation event therefore added momentum to losses already being driven by weaker investor sentiment.
Bitcoin and Ether ETFs Record Outflows
Outflows from US spot Bitcoin and Ether ETFs also contributed to weaker cryptocurrency demand.
ETF flows are closely watched by investors because they offer an indication of institutional demand for digital assets.
Persistent inflows can provide support to cryptocurrency prices, while sizeable withdrawals may signal that investors are reducing exposure.
The recent outflows have therefore added another source of pressure at a time when cryptocurrency traders are already reassessing the outlook for interest rates and global financial conditions.
Interest Rate Concerns Weigh on Crypto
Investor sentiment was further affected by central bank meeting minutes that raised concerns about the possibility of additional monetary tightening.
Expectations that interest rates could remain high, or potentially rise further, are generally negative for cryptocurrencies and other speculative assets.
Higher interest rates make lower-risk investments such as government bonds more attractive, while also reducing liquidity available for riskier markets.
Bitcoin and other cryptocurrencies have historically been sensitive to changes in interest rate expectations because tighter financial conditions can reduce demand for high-risk assets.
Eight of the Ten Largest Cryptocurrencies Fall
The sell-off affected most leading cryptocurrencies.
Among the ten largest cryptocurrencies excluding stablecoins, eight were trading lower over the previous 24 hours on Thursday morning.
XRP recorded the largest decline among the group, falling approximately 4.6%, while Dogecoin dropped around 4.5%.
Ether declined 4.1%, followed by Hyperliquid at 3.7% and Solana at 3.1%.
Bitcoin and Zcash each fell about 2.4%.
BNB was relatively resilient, slipping just 0.5%, while Tron and Monero recorded modest gains.
| Cryptocurrency | 24-hour performance |
|---|---|
| XRP | -4.6% |
| Dogecoin | -4.5% |
| Ether | -4.1% |
| Hyperliquid | -3.7% |
| Solana | -3.1% |
| Bitcoin | -2.4% |
| Zcash | -2.4% |
| BNB | -0.5% |
| Tron | Slight gain |
| Monero | Slight gain |
Crypto Market Faces Broad Risk-Off Sentiment
The scale of losses across major cryptocurrencies indicates that the decline is not limited to Bitcoin.
ETF outflows, leveraged liquidations and uncertainty surrounding monetary policy have combined to reduce investor appetite across the digital asset sector.
At the same time, Bitcoin’s relatively small seven-day decline suggests that the market has not yet entered a significantly deeper correction.
Traders will now be watching whether Bitcoin can stabilise around the $83,000 level and whether institutional ETF flows begin to improve.
A sustained move lower could increase attention on the psychologically important $80,000 area, while renewed demand could help Bitcoin recover toward its recent highs above $86,000.
