Bitcoin Briefly Falls Below $67,000 as Liquidations Top $1.5 Billion
Market-wide weakness accelerated throughout the session, pushing the total cryptocurrency market capitalization down 5.23% to approximately $2.32 trillion.
Summary:
- Bitcoin fell below $67,000 as crypto markets sold off.
- U.S. spot Bitcoin ETFs recorded $484 million in net outflows on Monday.
- The 11-day outflow streak has now reached roughly $3.45 billion.
Major digital assets traded lower across the board, with Bitcoin briefly falling to an intraday low of around $66,800 before recovering to roughly $67,400. Even after the rebound, BTC remained down 11.63% over the past seven days. Ethereum traded near $1,897, down 8.45% over the same period, while Solana shed more than 10%.
The decline coincided with continued institutional selling pressure. U.S. spot Bitcoin ETFs recorded $484 million in net outflows on Monday, marking an 11th consecutive day of withdrawals and lifting cumulative outflows during the streak to approximately $3.45 billion. BlackRock’s iShares Bitcoin Trust (IBIT) accounted for roughly $440 million of the day’s redemptions, while MSBT attracted a modest $6.1 million in net inflows, according to ETF flow data from FarSide Investors.
Derivative markets reflected the severity of the move. According to information from CoinGlass, more than $1.5 billion in crypto positions were liquidated over the previous 24 hours, including roughly $1.35 billion in long positions. The largest single liquidation occurred on Hyperliquid’s BTC-USD market, underscoring the extent of leverage unwinding across the sector.
Bitcoin Breaks Key Technical Levels
Bitcoin’s price action has weakened materially from a technical perspective.
The asset has declined from the $74,000 region reached late last month and is now trading near $67,400 after breaking several key support zones in quick succession. The move below $69,000 carries particular significance because the level represented both a major psychological threshold and an important historical reference point from previous market cycles.
Recent trading activity shows a clear pattern of lower highs and lower lows, indicating sellers remain in control of short-term momentum. Although Bitcoin has staged a modest rebound from intraday lows near $66,800, the broader trend remains decisively bearish until the asset can reclaim higher resistance levels.
Momentum indicators also highlight the intensity of the correction. On the 30-minute timeframe, the Relative Strength Index (RSI) recently fell into oversold territory before recovering slightly, suggesting selling pressure remains elevated even as some traders attempt to establish short-term support.
On-Chain Data Shows Growing Market Stress
Beyond price action, on-chain metrics indicate that the recent decline is creating increasing pressure across Bitcoin’s holder base. This stress has been actively compounded by supply-side fears, highlighted by recent on-chain tracking showing Mt. Gox transferring over 10,000 Bitcoin amid its ongoing repayment push.
Data from CryptoQuant shows Bitcoin’s Supply in Loss metric has risen to approximately 40.6%. The indicator measures the percentage of circulating Bitcoin currently held below its acquisition cost and is widely used to gauge investor stress during market downturns.
Historically, sharp increases in Supply in Loss have coincided with periods of capitulation, when weaker market participants exit positions and long-term investors begin accumulating supply.
What stands out in the current cycle is the long-term trend behind the metric. Since 2015, major Bitcoin bottoms have consistently formed when Supply in Loss approached a declining resistance trendline. However, each successive cycle has required a lower percentage of underwater supply to establish a durable low.
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Earlier bear markets often saw more than 60% of Bitcoin’s supply fall into unrealized losses before a bottom emerged. During later cycles, including the 2018-2019 downturn and the 2022 bear market, the threshold declined considerably.
A Maturing Market Structure
The declining capitulation threshold may reflect the evolution of Bitcoin’s ownership base.
Institutional investors, spot Bitcoin ETFs, public-company treasury holders, and long-term holders now control a significantly larger share of circulating supply than they did in previous cycles. These participants typically operate with longer investment horizons and are less sensitive to short-term volatility.
As a result, the market may no longer require extreme levels of distress to establish a cyclical bottom. The current 40.6% reading indicates meaningful pressure, but it remains below the levels historically associated with maximum capitulation.
For investors, the key takeaway is not that Bitcoin has necessarily reached a bottom. Rather, the market is approaching an area that has repeatedly marked important accumulation zones throughout Bitcoin’s history. If weakness persists and Supply in Loss continues rising toward its long-term trendline, the metric could become one of the most closely watched indicators for assessing whether the current correction is nearing exhaustion.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
