Bitcoin Plunges 36% From Its High, Poised for Worst Month Since 2022
The crypto market was hit by yet another wave of liquidations: about US$2 billion in leveraged positions were wiped out.
Quick overview
- The cryptocurrency market is experiencing significant pressure, with Bitcoin's price falling sharply to around US$83,000 after dipping to US$81,000.
- Approximately US$2 billion in leveraged positions were liquidated, contributing to a negative market sentiment reflected in CoinGlass's sentiment index, which has reached 'extreme fear' levels.
- Institutional support is waning, with Bitcoin ETFs seeing US$903 million in net outflows, and a 35% drop in open interest for perpetual futures since October.
- The recent sell-off has been exacerbated by large amounts of dormant Bitcoin moving to exchanges, overwhelming buy-side demand and leading to a formal correction exceeding 20% from October's all-time high.
The cryptocurrency market remains under pressure, with selling intensifying around the world’s largest digital asset.
Bitcoin (BTC) continues to fall—its steepest slide since 2022—with prices now around US$83,000 after briefly dipping to US$81,000 on Friday. The crypto market was hit by yet another wave of liquidations: about US$2 billion in leveraged positions were wiped out, according to CoinGlass, amid a global risk-off mood.
Bitcoin dropped as much as 6.4%, while Ethereum fell up to 7.6%, pushing it below US$2,700.
The sharp decline underscores a deeply negative sentiment. CoinGlass’s sentiment index—which factors in volatility, momentum, and demand—has plunged to “extreme fear,” levels not seen since the 2022 collapse. It’s a stark contrast to just over a year ago, when Donald Trump’s U.S. election win pushed the index to 94 points.
Institutional Signals Add to the Pressure
Institutional flows are offering little support. The 12 U.S.-listed Bitcoin ETFs recorded US$903 million in net outflows on Thursday—the second-largest daily drop since they launched in January 2024. Meanwhile, open interest in perpetual futures has fallen 35% from its October peak, when it nearly reached US$94 billion.
Another factor accelerating the sell-off is the sudden activity from long-dormant wallets. According to CoinDesk, large amounts of Bitcoin held inactive for years have recently moved to centralized exchanges, adding tens of thousands of BTC to supply. That influx overwhelmed buy-side demand at major trading venues, tipping the market decisively toward sell orders.
Tech Stocks Diverge—and Crypto Breaks Correlation
The crypto slump also contrasted with the brief optimism seen in U.S. tech stocks. Nvidia’s earnings temporarily lifted sentiment on Thursday, with the Nasdaq up more than 2% early in the session before reversing sharply to close down 2.2%. Cryptocurrencies failed to benefit from that early rally, breaking their usual correlation with the tech sector.
Bitcoin’s drop from its October all-time high—when it surpassed US$126,000—has triggered technical alarms. The pullback already exceeds 20%, marking a formal correction. For those who bought at the peak, the loss now stands at US$45,420.19 per coin, a plunge of 36.04%.
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