Why Is Crypto Market Down Today?

Key Insights:

• Bitcoin price fell below $75,000 as the crypto market crash pushed BTC toward $73,700 amid widespread selling.
• U.S. spot Bitcoin ETFs recorded $1.28 billion in weekly outflows, led by BlackRock’s IBIT fund.
• Crypto liquidations exceeded $1 billion, with long positions accounting for $933 million ahead of U.S. inflation data.

Bitcoin has fallen below $75,000 on Monday, extending a selloff marked by heavy ETF withdrawals and leveraged liquidations. During the decline, the BTC price approached $73,700 as roughly $1 billion in crypto positions were forced closed over 24 hours. The downturn followed a week of mostly negative fund flows, leaving the BTC price exposed to weekend selling, which has been the main reason why the crypto market is down today.

Bitcoin Falls Below $75,000 as Selling Extends Into Monday

Bitcoin is trading at around $74,500 on Monday, following a session on Sunday that saw the digital currency fall through to $73,700. Ethereum has also fallen below $2,100 before rallying back above $2,130, continuing its losses in the ongoing crypto market collapse. Besides BTC and ETH, Solana and XRP also tumbled as the sell pressure spread out in the market.

The total cryptocurrency market capitalization fell toward $2.5 trillion as the decline spread beyond Bitcoin. Selling accelerated after last week’s weakness in technology stocks, which had already pulled BTC back from above $80,000.

As we reported, Friday’s U.S. employment report added another reason why the crypto market is down today as investors reassessed the outlook for interest rates. Employers in October created 165,000 jobs, more than expected, and unemployment fell to 4.1%.

Bitcoin had already fallen below $76,000 following the stronger jobs report. The latest weekend losses continued the slide as investors trimmed back ahead of another big U.S. economic data release.

Bitcoin ETF Outflows Reach $1.28B in One Week

Fund withdrawals have also been adding to the selling pressure, with U.S. spot Bitcoin ETFs losing $1.28 billion between November 2 and 6. The funds recorded outflows on four of five trading days, according to fund flow data.

BlackRock’s IBIT accounted for about $1.21 billion of the weekly withdrawals, making it the main source of fund outflows. On Friday alone, investors withdrew $403 million from IBIT as total spot Bitcoin ETF outflows reached $411.9 million.

That followed $430.2 million in redemptions on Thursday, reversing a brief improvement earlier in the week. The ETFs attracted $74.6 million on Wednesday, but the next two sessions erased that gain and deepened weekly losses. IBIT recorded withdrawals even during Wednesday’s brief marketwide inflow.

Fidelity’s FBTC attracted $42.8 million on Friday, yet those inflows could not offset withdrawals from rival products. The continued net outflows coincided with Bitcoin’s failure to hold its recovery above $80,000.

Crypto Liquidations Cross $1B Ahead of Inflation Data

Another reason why the crypto market is down today is the forced closures that have also been witnessed by traders who had borrowed money to bet on the price recovering. About $1.04 billion worth of crypto holdings were liquidated in just 24 hours, with roughly $933 million in long positions going down. During that move, more than 155,000 traders faced forced closures during that period.

The most recent liquidations have come on the heels of another $1 billion wave of activity on November 5, when Bitcoin declined toward $75,500. In a falling market, repeated liquidations can further erode profits with exchanges automatically closing leveraged positions that no longer have sufficient margin.

This made Bitcoin’s price go below $75,000, which put the recent low at $73,700 back in the spotlight. Bull buyers will have to clear the $75,000 price zone first before they can take a shot at the $76,000 area, which BTC did not hold last week.

Meanwhile, the next test for markets will be Tuesday’s U.S. consumer price index, due at 8:30 a.m. ET on Nov. 10. The report will give traders another inflation reading ahead of the interest-rate decision by the Federal Reserve in December.

This article provides market information, not financial advice. Cryptocurrency prices are volatile, and technical levels do not guarantee returns. Readers should conduct independent research and consult a qualified financial professional before making investment decisions.