Bitcoin plunged toward $74,000 late Sunday as another wave of forced selling swept through crypto markets. The largest cryptocurrency touched $73,708, its lowest level since August, while Ethereum fell to $2,100.
CoinGlass data showed $855.69 million in liquidations over 24 hours. More than 140,000 traders were liquidated, with long positions accounting for 90.2% of losses.
The scale of the move has drawn attention to several warning signs that suggest the downturn may extend beyond excessive leverage.
Bitcoin Breaks Critical Support
Bitcoin has fallen below its short-term holder cost basis, estimated near $75,700 by Glassnode. This means many recent buyers are underwater. Further declines could encourage them to sell, making a recovery harder.
Institutional Outflows Accelerate
US spot Bitcoin ETFs recorded approximately $1.28 billion in net outflows last week. Friday alone saw $411.9 million withdrawn, including $403 million from BlackRock's IBIT. These withdrawals show that selling pressure extends beyond leveraged derivatives.
Spot Buyers Show Little Aggression
Analysts warn that spot buyers have shown little aggression. Recent recoveries have depended heavily on leveraged futures positions. Sunday's liquidations exposed how quickly that support can disappear.
Wall Street and Political Risks Add Pressure
The Nasdaq plunged 5.5% on Thursday amid concerns about AI valuations and regulation. Meanwhile, Democrats' US midterm victories have raised uncertainty over future crypto legislation. The recent $6 billion Binance hack has further damaged confidence.
How Much Worse Could Bitcoin Get?
The immediate outlook remains dangerous. Bitcoin needs to reclaim $75,700 and eventually the $77,000–$80,000 range to restore confidence. Otherwise, $70,000 becomes an increasingly important downside level.
Monday's US stock market reopening and subsequent ETF flows could determine whether the selloff continues. The biggest danger is that Bitcoin is facing several pressures simultaneously, with little evidence of sustained buying demand.
