Crypto wipes $390B as Bitcoin (BTC) drops 17% and ETH falls 22%, $7B liquidations
Crypto entered a risk-off sell-off, wiping about $390B in value. Bitcoin (BTC) slid ~17% for the week, and Ether (ETH) dropped ~22%, pushing total market cap to just above $2T versus ~ $4.2T at the October peak.
Derivatives liquidations accelerated the move. CoinGlass cited nearly $7B of leveraged positions liquidated over the week, with about $5.7B coming from long (bull) positions. The biggest liquidation spikes hit on Monday and Friday.
Institutional signals also turned negative. Strategy (formerly MicroStrategy) sold 32 BTC (~$2.5M) for the first time in nearly four years, and Bitcoin spot ETF outflows continued—raising concerns that capital may rotate toward AI-related investments rather than crypto.
Macro pressure weighed on risk assets. Strong US jobs data lifted Treasury yields and increased expectations of additional Fed rate hikes, pulling down broader tech sentiment (Nasdaq 100 saw its worst day in the referenced period).
Traders to watch: US yields/Fed-rate pricing and whether BTC ETF outflows persist. The article notes weekend stabilization, but it remains uncertain whether this is a bottom or another leg lower.
(Keyword focus: Bitcoin (BTC) and ETH both face downside pressure.)
Bearish
The sell-off is driven by a combination of forced derivatives deleveraging and persistent institutional/ETF weakness. With nearly $7B liquidated (and most from long positions), BTC and ETH likely face continued volatility and selling pressure in the short term, especially if risk assets remain pressured by higher yields and “higher-for-longer” Fed pricing. The BTC spot ETF outflows and Strategy’s BTC sale add a negative demand signal that can delay stabilization. Even though the article mentions weekend stabilization, the setup is consistent with either a fragile bottom or another liquidation-driven leg lower—so the near-term bias remains bearish for BTC and ETH.