Bitcoin and Ethereum fell to three-month lows on Thursday, extending a selloff that has erased $550 billion in market value since October. Liquidations, ETF outflows and a shrinking stablecoin supply point to weak demand, and one on-chain indicator places a bear-market reference near $52,700.
Bitcoin and Ethereum dropped to three-month lows Thursday, deepening a selloff that has erased $550 billion in market value since October.
Bitcoin slumped to $71,317, its lowest level since August, while Ethereum briefly fell below $2,000 to touch $1,983. The broader crypto market's valuation slid from approximately $2.94 trillion in early October to $2.39 trillion.
Leveraged traders take the hit
The decline triggered widespread losses across derivatives markets. According to CoinGlass, 125,731 traders were liquidated over 24 hours, with closed positions totaling about $727 million.
Bitcoin accounted for $293.8 million of those liquidations, and bullish positions made up 91.1% of that total. Ethereum followed with $120.2 million, of which 87.7% came from traders betting on higher prices.
Demand weakens as ETF money leaves
The selloff arrives as institutional demand weakens. SoSoValue data showed US spot Bitcoin exchange-traded funds recorded approximately $2 billion in net outflows over the past three weeks.
Liquidity is also contracting. The supply of major dollar-linked stablecoins contracted by $14.2 billion over 30 days, while Bitcoin's apparent demand declined by 284,000 BTC.
Bitcoin loses its 200-day average
Bitcoin has also fallen below its 200-day moving average, which stood near $73,200. As a result, attention has shifted to $68,000, which CoinGlass's liquidation heatmap identifies as the next potential support region.
Deeper levels are in view too. Joao Wedson, chief executive of blockchain analytics firm Alphractal, highlighted Bitcoin's Cumulative Value Days Destroyed indicator, which places a historical bear-market valuation reference near $52,700. At a Bitcoin price of $72,500, a full retest would imply a further decline of roughly 27%.
However, the historical relationship does not establish that Bitcoin must revisit $52,700. The indicator changes with on-chain activity, so its threshold can rise over time and narrow the gap without an equivalent drop in price.
Source: CryptoSlate
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