Overview
- Bitcoin briefly fell under $70,000 and traded near $67,000, its weakest level since late 2024, leaving it roughly 40%–45% below the October peak around $126,000.
- U.S. spot bitcoin ETFs have turned net sellers with reported outflows of about $7 billion in November, $2 billion in December, and more than $3 billion in January, reversing a major source of institutional demand.
- Market catalysts cited by analysts include President Trump’s nomination of Kevin Warsh for Fed chair, viewed as hawkish on liquidity, and a tech-led equity sell-off that pressured risk assets.
- Derivatives stress intensified the move, with funding turning negative, open interest falling, and crypto liquidations totaling more than $2 billion this week, including hundreds of millions in the past 24 hours.
- Downside risk gauges are flashing: Polymarket odds favor sub-$70,000 in the near term and a test of $65,000 this year, while Stifel flagged a potential slide toward $38,000 if past correction patterns repeat.