Bitcoin Breaks Below $74,000 as 24-Hour Crypto Liquidations Hit $193 Million

US spot Bitcoin ETFs had been seen as a key channel for institutional inflows, but recorded combined net outflows of $4.06 billion in June, signaling waning risk appetite among large investors. Delayed interest-rate cuts by major central banks and market sentiment mired in extreme fear have added funding and macroeconomic pressure on crypto assets.

Bitcoin and Ether both plunged on the morning of July 1, with Bitcoin falling below $58,200 and nearing a two-week low. The decline set off cascading liquidations of leveraged positions, with long liquidations across the market reaching $249 million over the previous 24 hours. Traders betting on a rebound bore the brunt of the losses, while short-term volatility risk rose sharply.

Bitcoin is highly sensitive to interest rates and US dollar liquidity, putting the Federal Reserve’s June rate decision in sharp focus as new Chair Kevin Warsh presided over the FOMC for the first time. US consumer prices were still up 4.2% year on year in May, limiting the scope for rate cuts and exposing risk assets to pressure from a potentially more hawkish policy stance.

Bitcoin climbed to about $67,300 on June 16 before retreating to $65,802 on the morning of June 17 and falling below the $65,600 threshold. Roughly $338 million in positions were liquidated across the crypto market over 24 hours, mostly longs, while the Fear & Greed Index dropped to 22, signaling extreme fear. With the FOMC decision due at around midnight on June 18 Taipei time, the market shifted into low-volume consolidation.

Bitcoin has continued to retreat from its highs, with $62,000 emerging as a key support level for the market. The U.S. Bureau of Labor Statistics’ consumer price index (CPI) influences expectations for Federal Reserve rate cuts, which in turn affect dollar liquidity and valuations for risk assets including cryptocurrencies. That makes the U.S. inflation reading for May particularly important.

Bitcoin most recently fell below $62,000 and briefly approached $61,000. More than $426 million in positions were liquidated across the market over the past 24 hours, with long positions accounting for about 80%, while the Fear Index dropped to 12. U.S. core CPI subsequently rose 0.2% month on month in May, less than the market had feared, helping Bitcoin pare some losses. The $60,000 threshold nevertheless remains under pressure.

Bitcoin and the broader cryptocurrency market rely heavily on leveraged capital. When prices fall sharply, exchanges forcibly close positions with insufficient margin, amplifying the decline. The latest selling came ahead of the U.S. Federal Reserve’s interest-rate decision as risk aversion intensified. Consecutive net outflows from spot Bitcoin ETFs and MicroStrategy’s first Bitcoin sale also undermined investor confidence.

Bitcoin fell below $67,000 early on June 3 and briefly touched $66,316, pulling Ether, Solana, Dogecoin and other major cryptocurrencies lower. Marketwide liquidations reached $1.78 billion over 24 hours, with long positions accounting for about 90%. The concentrated unwinding of leveraged bullish bets sent market anxiety sharply higher.

Market maker Wintermute said capital in U.S. equities was concentrated in AI stocks and had not flowed into Bitcoin, leaving crypto markets sharply decoupled from U.S. stocks at record highs. U.S. spot Bitcoin ETFs also posted their largest weekly outflow, while market sentiment fell to “extreme fear.” Long-term large holders, however, continued to quietly build positions through over-the-counter trades.

As of July 20, Bitcoin remained range-bound near $76,000. The lack of direction triggered successive closures of leveraged positions. About 87,000 traders were liquidated over the previous 24 hours, with total market liquidations exceeding $300 million. Most losses came from long positions, indicating that buying support remained weak after ETF funds pulled back.

Bitcoin has recently come under pressure from hawkish signals from the U.S. Federal Reserve, continued outflows from spot exchange-traded funds and geopolitical risks. The heavy concentration of leveraged long positions triggered cascading liquidations after the price broke below key support, further intensifying the market's “extreme fear” sentiment.

As of July 20, BTC had fallen as low as $72,582, a 14-day low, with about 152,000 traders liquidated for $755 million over 24 hours. Long positions accounted for more than 86% of the total. The market later plunged again to about $70,600, while the Fear and Greed Index dropped to 23 and ETH fell below $2,000.

Bitcoin (BTC) and Ether (ETH) are key benchmarks for the crypto market, and their price swings affect perpetual futures and leveraged positions on exchanges. When markets reverse rapidly, platforms forcibly close long and short positions with insufficient margin, making CoinGlass liquidation data a widely used gauge of market risk and investor sentiment.

As of July 19, Bitcoin had rebounded to around $78,900 over the previous 12 hours, while Ether recovered to about $2,300. CoinGlass data showed that crypto liquidations exceeded $300 million over 24 hours, with more than 83,000 traders forced out of their positions. During the recent market moves, short positions at one point accounted for 67% of liquidations, highlighting the impact of sharp rallies on highly leveraged bears.

Bitcoin fell below $80,000 as markets reassessed the Federal Reserve's rate-cut timetable after U.S. consumer inflation reached 3.8% year on year. Persistently high interest rates weigh on valuations for riskier assets, while concentrated leverage in crypto markets can trigger cascading forced liquidations when prices fall sharply.

On the day the CPI data was released, Bitcoin briefly slid to $79,400, later breaking below $79,000 and at one point plunging to $76,000. Ether also fell below $2,100. The initial selloff liquidated positions held by more than 100,000 traders, totaling over $320 million; liquidations subsequently climbed to $840 million over 24 hours.

Bitcoin’s volatility is often amplified by highly leveraged trading, with sudden price reversals liable to trigger cascading liquidations. Federal Reserve Chair Jerome Powell’s term as chair is scheduled to end in May 2026, and markets are closely assessing the leadership transition and the future path of interest-rate policy. The uncertainty is also weighing on risk appetite for crypto assets.

In the latest trading session, Bitcoin climbed as high as $79,447 before quickly retreating. About 92,000 traders were liquidated over the past 24 hours, with total liquidations reaching $159.6 million. The Crypto Fear and Greed Index fell to 40, entering the “fear” zone and signaling that investors had turned more cautious.

Bitcoin is a key bellwether for the crypto-asset market, and sharp price declines often trigger cascading liquidations of highly leveraged positions. Investors turned cautious ahead of the U.S. Federal Reserve’s Federal Open Market Committee meeting, while stalled U.S.-Iran negotiations further dampened risk appetite.

On the morning of April 28, Bitcoin fell as low as $76,460 and breached the $76,400 level. More than $338 million in positions were liquidated across the market over nearly 24 hours, affecting about 100,000 traders, with long positions accounting for more than 80% of the total. The Fear and Greed Index also dropped overnight to 33, returning to the fear range.