Bitcoin and Ethereum fell to three-month lows Thursday, with Bitcoin slumping to $71,317—its lowest level since August—while Ethereum briefly touched $1,983. The declines have deepened a cryptocurrency selloff that has erased $550 billion in market value since October, pushing the broader crypto market's valuation from approximately $2.94 trillion in early October to $2.39 trillion.
The price decline triggered widespread liquidations across cryptocurrency derivatives markets. According to CoinGlass, 125,731 traders were liquidated over 24 hours, with closed positions totaling approximately $727 million. Bitcoin accounted for $293.8 million of those liquidations, with 91.1% from bullish positions, while Ethereum followed with $120.2 million, of which 87.7% came from traders betting on higher prices. Together, the two cryptocurrencies accounted for approximately $414 million, or 57% of the market-wide total.
Selling intensified during a four-hour period when nearly $489 million in leveraged positions were liquidated, with long positions accounting for approximately $446 million of those losses compared with $44 million in short positions. The largest individual liquidation was a $31 million Bitcoin position on decentralized derivatives exchange Hyperliquid.
The downturn has coincided with a sharp deterioration in market sentiment, as measured by CryptoQuant's Analyst Consensus Index, which fell from -1.0 to -1.8 standard deviations over seven days. The selling pressure has struck a market already struggling to attract fresh capital. US spot Bitcoin exchange-traded funds recorded approximately $2 billion in net outflows over the past three weeks, while Ethereum-focused products headed toward a seventh consecutive week of withdrawals, with more than $2.1 billion leaving the funds during that period.
The supply of major dollar-linked stablecoins contracted by $14.2 billion over 30 days, while Bitcoin's apparent demand declined by 284,000 BTC, leaving fewer sources of demand to absorb selling pressure.
Technical and Valuation Concerns
Bitcoin has fallen below its 200-day moving average, which stood near $73,200, breaking a widely followed trend indicator. CoinGlass identified approximately $68,000 as the next potential support region based on liquidation heatmap analysis.
Historical on-chain valuation data suggests Bitcoin could face a considerably deeper correction if market conditions deteriorate further. The Cumulative Value Days Destroyed (CVDD) indicator, highlighted by blockchain analytics firm Alphactal, places a historical bear-market valuation reference near $52,700. At a Bitcoin price of $72,500, the cryptocurrency was trading approximately 37.7% above the CVDD level, implying a potential further decline of roughly 27% from that reference price.
Historical patterns show Bitcoin approached or briefly traded below the CVDD indicator in previous market cycles. In December 2018, Bitcoin bottomed near $3,122 against a CVDD reading of $3,060. The November 2022 market bottom occurred around $15,479, slightly below the indicator's $15,900 valuation. Similar patterns emerged during the January 2015 and March 2020 downturns.
The market now faces two distinct price tests: whether buyers can defend the $68,000 region and whether a sustained recovery can push Bitcoin back above its 200-day moving average. A failure to stabilize around those levels would strengthen concerns that the latest selloff is developing into a more prolonged correction.
