Bitcoin has extended its multi-month decline as a broad repricing of global liquidity pressures risk assets across markets. Prices fell to the mid-$70,000s, marking four consecutive monthly losses for the first time since 2018, while heavy outflows from crypto investment products and spot ETFs signaled accelerating institutional withdrawal.
Analysts say the selloff is being driven more by macro forces than crypto-specific issues. Stronger U.S. inflation data and shifting expectations around Federal Reserve policy triggered a global “risk-off” reset, hitting equities, gold, silver, and digital assets alike. Higher margin requirements and deleveraging in futures markets amplified the downturn.
Crypto derivatives data shows a sharp drop in open interest and billions of dollars in long liquidations, highlighting reduced speculative appetite. On-chain indicators also weakened, with short-term holders underwater and miners increasing exchange inflows, adding sell pressure during a period of tightening liquidity.
Technically, Bitcoin left a large CME futures gap between roughly $78,000 and $84,500, which traders see as a potential rebound zone. Despite the drawdown — about 40% from the all-time high near $126,000 — some analysts note this is still mild compared to past cycles.
There are early signs that large holders may be accumulating during the dip, and several research firms argue this resembles a short-term bear phase rather than the start of a prolonged crypto winter. Longer term, expectations remain that prices could stabilize once forced selling subsides and macro liquidity conditions improve.