Bitcoin approaches the critical support of $85,000, and ahead of CPI data, a wave of liquidation intensifies market volatility.

As important US employment data approaches, Bitcoin prices come under pressure and decline, with market volatility significantly amplifying. Due to macroeconomic uncertainties and the concentration of high-leverage positions being liquidated, Bitcoin temporarily tested the critical support level of $85,000, triggering large-scale liquidations.

Data shows that Bitcoin’s price quickly fell from above $89,000 the previous day to a low of approximately $85,400, then rebounded slightly to around $85,800, with a daily decline of about 4.2%. Over a longer cycle, Bitcoin has retreated more than 9% from last week’s high and nearly 32% from its year-to-date peak, with short-term technical patterns clearly weakening.

The core background of this decline is the rising risk of macro events. The US non-farm employment data is about to be released, with the market generally expecting a slowdown in job growth. A Reuters survey indicates that economists forecast approximately 55,000 new jobs added in October, significantly below previous figures. Although cooling employment theoretically helps ease inflation pressures and creates room for future rate cuts, the Federal Reserve recently cut interest rates by 25 basis points and hinted that the number of rate cuts in 2026 will be limited, making market judgments on policy paths more cautious.

In an uncertain mood, the derivatives market is the first to come under pressure. CoinGlass data shows that in the past 24 hours, the total liquidation amount in the crypto market was about $653 million, with long positions liquidated up to $577 million. Bitcoin-related long liquidations alone reached $169 million. Meanwhile, Bitcoin futures open interest has fallen to approximately $59.8 billion, a significant retreat from the high at the beginning of October, reflecting that leveraged funds are actively de-risking.

Institutional fund movements also exert pressure on the market. According to SoSoValue, US spot Bitcoin ETF net outflows since December amount to about $159 million, continuing the previous trend of capital outflows and weakening market confidence in medium- and short-term demand.

Some market participants believe that this round of decline may be related to concentrated selling by institutions and whales. Analysts pointed out that mainstream CEXs, some market-making institutions, and large holders collectively sold nearly $2 billion worth of Bitcoin, accelerating the price correction.

Looking ahead, analyst opinions are divided. Some believe that Bitcoin still faces the risk of short-term decline to the $75,000 range; others point out that there is substantial buying interest between $80,000 and $85,000, which could serve as a stage support. Currently, the Fear and Greed Index is in the “Extreme Fear” zone, indicating that market volatility may persist until the trend becomes clearer.