Bitcoin price drop below $74,000 and crypto liquidations, Digi Mart USA News: Bitcoin fell to just under $74,000 late Sunday as another wave of forced selling swept through crypto markets. The renewed decline comes as investors see several warning signs suggesting the downturn could continue.
Bitcoin reached $73,708, its lowest level since August, while Ethereum dropped to $2,100. Data from CoinGlass shows liquidations totaling $855.69 million within 24 hours.
More than 140,000 traders were liquidated, with long positions accounting for 90.2% of the losses.
The scale of the losses has raised concern, and four warning signs suggest Bitcoin’s problems extend beyond excessive leverage. Bitcoin has fallen below the short-term cost basis of recent holders, estimated by Glassnode at about $75,700.
That means many buyers from recent months are now sitting on losses. Further declines could push them to sell, which would make a recovery harder.
U.S. spot Bitcoin ETFs recorded net outflows of about $1.28 billion over the past week.
On Friday alone, $411.9 million was withdrawn, including $403 million from BlackRock’s IBIT.
These net outflows indicate that selling pressure is not coming only from leveraged derivatives. Analysts warn that spot buyers are showing little activity, and recent recoveries have relied heavily on leveraged futures positions.
Sunday’s liquidations show how quickly that support can disappear. The Nasdaq fell 5.5% on Thursday amid concerns over AI valuations and regulation.
In addition, Democratic election gains in the midterms have added uncertainty about future crypto legislation. The recent Binance hack, reported at $6 billion, has further damaged confidence.
To restore confidence, Bitcoin must reclaim $75,700 and later the $77,000 to $80,000 range. Otherwise, the $70,000 level is becoming increasingly important for investors.
The reopening of U.S. stock markets on Monday and further ETF flows could determine whether the sell-off continues.
The biggest risk is that Bitcoin faces several pressures at once, with few signs of sustained buying demand.
