Bitcoin dips below $75K as liquidations near $1 billion
In brief
- Bitcoin dipped below $75,000 overnight, hitting $74,344 for the first time in a month
- Crypto liquidations topped $917 million in 24 hours, with long positions accounting for $827 million
- Bitcoin ETFs shed over $1.25 billion this week amid a six-day outflow streak
Spot prices tumble across the board
Bitcoin was trading around $75,500, showing a 1.8% drop over the last 24 hours and 2.7% in the last week. The coin's decline accelerated after trading above the $80,000 mark as recently as last week before leading a broader crypto market dip.
Altcoins followed suit. Ethereum fell 2.7% in the last day to $2,059, while Solana declined over 3% to $84.
Liquidations spike as leverage unwinds
The selling pressure triggered a cascade of forced liquidations across the derivatives market. CoinGlass showed $917 million worth of liquidations during the past 24 hours, led by Bitcoin with $371 million and Ethereum at about $261 million.
Long positions—or bets that an asset's price will rise—dominated the carnage with $827 million worth of liquidations. The heavy losses on long positions suggest traders were caught off-guard by the downside move.
ETF outflows and institutional pressure
The week proved particularly brutal for institutional investors. Bitcoin ETFs shed over $1.25 billion worth of investments amid a six-day streak of outflows, marking one of the worst periods for spot products in recent months.
Rising U.S. Treasury yields may have contributed to the ETF outflows, which then affected the price of Bitcoin. The transmission mechanism appears more institutional than ever. Yellow Capital CEO Diego Martin noted that geopolitical shocks hit Treasury yields, which hit risk appetite, which hits ETF flows—ultimately hitting Bitcoin itself. The chain reaction has become clearer as institutional capital dominates spot market flows.