Crypto Markets Hit as ETFs Dump $817.7M Of Bitcoin, BTC Plummets To $82,000

The crypto market was hit on Thursday after the US market opened, as Bitcoin dropped below $82,000, caught up in a broader Wall Street selloff, amid a sharp turnaround in surging gold prices and continued selling of US spot Bitcoin exchange-traded funds (ETFs).

Market conviction remains cautious after the price pullback, with short-term holders appearing weak, leaving the market susceptible to further distribution if incoming support levels in Bitcoin’s price fail.

The crypto market capitalization plunged 6.1% to $2.81 trillion, with safe-haven demand, geopolitical tensions, and the Federal Reserve’s rate outlook underpinning the move.

CoinGlass data shows that over 274,000 traders were liquidated in the past 24 hours, with total liquidations hitting $1.71 billion. The majority of these, about 93%, were levered long positions attached to BTC and ETH.

According to the Crypto Fear and Greed Index, investor sentiment is still in the ‘extreme fear’ zone, with traders remaining cautious since Wednesday.

This came after a US agriculture committee advanced a bill that would grant the CFTC new authority to regulate digital commodities and strengthen consumer protections in the emerging market. The legislation, called the Digital Commodity Intermediaries Act, builds on the Clarity Act.

Meanwhile, the US added to geopolitical tensions after the country dispatched another warship to the Middle East amid the country’s rising tensions with Iran, with Trump stating that he plans to speak with Tehran.

While crypto and the U.S. stock market took a hit, oil prices surged, while gold and silver retraced slightly after breaking new highs yet again the day before.

Bitcoin Hits Nine-Month Low Amid $817.7 Million In ETF Outflows

Bitcoin slumped to a fresh nine-month low of around $81,314 before recovering above the previous support level at $82,500.

BTC is trading at $82,826.52 as of 02:42 a.m. EST, down 6.2%, with trading volume surging 79% to $88 billion, indicating increased market activity.

Amid the continued decline, US spot BTC ETFs also recorded massive outflows, totalling around $817.8 million, according to CoinGlass data. BlackRock’s IBIT led the pack with $317.8 worth of outflows, as Fidelity’s and Grayscale’s products lost $168 million and $119.4 million, respectively.