Crypto Liquidations Surge as Bitcoin Falls Below $74K. How Bad Is It?
Bitcoin plunged toward $73,708 late Sunday, its lowest level since August, while Ethereum fell to $2,100, triggering $855.69 million in crypto liquidations over 24 hours.
The latest crash comes as investors face several warning signs that the downturn could deepen. More than 140,000 traders were liquidated, with long positions accounting for 90.2% of losses, according to CoinGlass data.
Critical Support Broken
Bitcoin has fallen below its short-term holder cost basis, estimated near $75,700 by Glassnode. This means many recent buyers are underwater, and further declines could encourage them to sell, making a recovery harder.
Institutional Outflows
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 Friday alone saw $411.9 million withdrawn, including $403 million from BlackRock's IBIT, showing that selling pressure extends beyond leveraged derivatives.
Market Pressures Mount
Analysts warn that spot buyers have shown little aggression, with recent recoveries depending heavily on leveraged futures positions. Sunday's liquidations exposed how quickly that support can disappear.
The Nasdaq plunged 5.5% on Thursday amid concerns about AI valuations and regulation, while Democrats' US midterm victories have raised uncertainty over future crypto legislation. The recent $6 billion Binance hack has further damaged confidence.
What Happens Next
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.
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