Bitcoin briefly dropped to around $72,711 on Thursday before rebounding above $73,000. As the market pulled back, liquidations across crypto assets over the past 24 hours neared $1 billion, indicating that high-leverage positions are still being unwound.
Nearly $1 billion in liquidations in 24 hours
According to CoinGecko data, Bitcoin's intraday decline briefly exceeded 3%, falling to a low of $72,712. According to Coinglass data, approximately $931 million to $937 million in total liquidations occurred across the market over the past 24 hours.
Despite Bitcoin’s daily decline of less than 4%, liquidations still approached $1 billion, reflecting that market leverage remains elevated. With limited price movement but a fragile position structure, even minor short-term declines triggered cascading effects.
Continuous outflows from ETFs are suppressing sentiment.
Funding conditions remain a significant source of pressure in this downturn. According to SoSoValue data, U.S. spot Bitcoin ETFs recorded a combined net outflow of approximately $1.02 billion over three trading days this week, adding to net outflows of about $1.26 billion and $1 billion in the previous two weeks, indicating that the withdrawal trend continues.
The report also noted that approximately $1.3 billion in BlackRock’s IBIT was traded in dark pools on Tuesday. Although such transactions do not appear directly on public order books, market participants generally view them as a cautious signal, indicating that some large funds are still adjusting their exposure.
Some researchers suggest that the recent outflows from ETFs resemble a directional reallocation rather than merely profit-taking or hedging adjustments, indicating that some institutional funds are becoming less risk-tolerant toward the market’s outlook.
The situation in the Middle East has increased risk-averse sentiment.
In addition to ETF fund outflows, escalating tensions in the Middle East are pressuring the crypto market. Reports indicate that the fragile ceasefire between the United States and Iran is on the verge of collapse, with direct military confrontations near the Strait of Hormuz significantly intensifying over the past 48 hours.
As a result, WTI crude oil prices have hovered around $92 per barrel. Rising energy prices typically intensify market concerns about inflation and geopolitical risks, thereby dampening risk appetite for highly volatile assets.
Some traders also noted that the Coinbase premium index has remained negative, indicating weak U.S. spot demand. Meanwhile, the thin order book depth on Coinbase suggests that macroeconomic news is more likely to amplify price volatility.
In the prediction markets, users’ confidence in Bitcoin’s short-term price movement is weakening. Relevant data shows that the probability of Bitcoin falling to $55,000 has risen to 38%, up from 22% a week ago, while the probability of Bitcoin rising to $84,000 has declined from 74% on Tuesday to 62%.