Bitcoin fell below $68,000 for the first time in weeks on Wednesday, triggering over $1 billion in liquidations across the crypto market. The drop came as exchange-traded fund outflows and losses in crypto-related stocks piled on the selling pressure, leaving traders scrambling for a floor.
The scale of the liquidation event
By midday, data showed more than $1 billion in leveraged positions were wiped out, with long positions taking the brunt. The move caught many off guard after weeks of relatively tight range trading. Exchange congestion spiked as users rushed to adjust margin, but no major platform reported downtime this time.
ETF outflows pile on
The selling coincided with a sharp reversal in spot Bitcoin ETF flows. After a run of net inflows earlier in the spring, the past several sessions have seen net redemptions, adding institutional weight to the bearish tilt. The timing isn't great — market makers had been positioning for a breakout above $72,000, not a breakdown.
Crypto stocks not spared
The pain spread beyond direct crypto holdings. Shares of major publicly traded crypto firms fell in tandem, with names like Coinbase and MicroStrategy losing ground. The correlation between equity and crypto markets has tightened again, and traders say the combined selloff is making it harder to find a bid.
Market looks for a floor
No clear catalyst has emerged yet to reverse the slide. On-chain data shows some accumulation at these levels, but not enough to absorb the wave of forced selling. The next batch of ETF flow data, due Thursday morning, will give the first real clue on whether institutional sentiment is stabilizing or still deteriorating.
