On Sunday evening, bitcoin sharply dropped to the $74,000 mark amid another wave of forced selling. The new plunge coincided with intensifying alarming macroeconomic and political signals that could exacerbate the decline.
Bitcoin fell to $73,708 — its lowest since August. Ethereum dropped to $2,100. Over the past 24 hours, $855.69 million in positions were liquidated, and more than 140,000 traders lost funds. At the same time, 90.2% of liquidations were long positions, meaning traders who bet on price increases.
1. Bitcoin broke through an important support level
Bitcoin fell below the average purchase price of short-term holders — according to Glassnode estimates, it is close to $75,700. Many recent buyers are now at a loss. If the decline continues, they may start selling, which would complicate any recovery.
2. Investors continue to withdraw funds
U.S. spot bitcoin ETFs saw net outflows of about $1.28 billion last week. On Friday alone, investors withdrew $411.9 million, of which $403 million came from BlackRock's IBIT fund. The outflows show that pressure on the price is not only coming from futures and margin positions.
3. Buyers are struggling to hold bitcoin up
Spot buyer activity remains low. In recent weeks, price recovery was mainly driven by leveraged positions — through futures. Sunday's liquidations clearly demonstrated how quickly such support disappears.
4. Wall Street and political risks add pressure
The Nasdaq fell 5.5% on Thursday amid concerns about overvaluation of AI-related companies and possible regulation of the sector. Democratic victories in the U.S. midterm elections created uncertainty regarding the future regulation of cryptocurrencies. The recent $6 billion Binance hack further undermined investor confidence.
What kind of decline awaits bitcoin
The situation remains extremely tense. Bitcoin needs to recover above $75,700 and then consolidate in the $77,000–80,000 range for the market to believe in growth again. Otherwise, the $70,000 level will become critical support. Further developments will be determined by the opening of the U.S. stock market on Monday and the subsequent inflow or outflow of funds into bitcoin ETFs.
The main threat is that several factors are simultaneously pressuring bitcoin, while sustained buying demand is not yet visible.
Cryptalist analysis: The combination of factors — ETF outflows, the break below the average purchase price of short-term holders, and spot weakness — forms a classic cascade risk scenario, where the dominance of longs (90.2%) makes the market vulnerable to further liquidations. Holding above $75,700 and returning to the $77,000–80,000 zone will be a key test for restoring confidence, while losing $70,000 could trigger a new wave of forced selling.