Bitcoin Falls Below $95,000 Amid Market Risk Aversion and ETF Outflows
Bitcoin slipped below the $95,000 mark for the first time in nearly six months as a wave of risk aversion swept across global markets. Investors pulled nearly $900 million from exchange-traded funds (ETFs), intensifying the recent sell-off. On Friday, Bitcoin dipped to a low of $94,455, extending its decline from the November 11 high of $107,482 into the fourth consecutive day.
With this downturn, Bitcoin is on the brink of erasing its gains for the year, having dropped as much as 7% in the last 24 hours. The cryptocurrency reached a record high of $126,251 in early October but ended the previous year, 2024, at $93,714.
“Bitcoin Black Friday,” Tether CEO Paolo Ardoino tweeted in response to the surprising price drop.
### Significant Liquidations Shake the Crypto Market
The broader crypto market sell-off has triggered more than $1.38 billion in liquidations, with about half occurring on Bitcoin trading pairs, according to data from CoinGlass. Bitcoin alone accounted for $676 million of liquidations. The largest single liquidation was a $44 million long position on BTC at HTX.
This recent market strain follows a major liquidation event on October 10, which wiped out $19 billion and erased over $1 trillion from the total market value of all cryptocurrencies. CoinGlass data reveal that the recent liquidations heavily impacted long positions, totaling $1.21 billion, while shorts amounted to $157.36 million. Overall, 278,152 traders were affected by the latest downturn.
### Market Factors and Tether’s Rising Dominance
Economic data from China and diminishing hopes for a Federal Reserve rate cut contributed to the negative momentum in both the crypto and equity markets. Meanwhile, Tether’s (USDT) dominance rate has reached its highest level since April. This trend is notable because surges in USDT dominance are often seen as a key indicator of Bitcoin bear markets.
### Is Bitcoin Entering a Bear Market?
Despite the sell-off, CryptoQuant CEO Ki Young Ju advises caution before declaring a Bitcoin bear market. He notes that many investors who entered Bitcoin 6 to 12 months ago have a cost basis near $94,000.
“Personally, I do not think the bear cycle is confirmed unless we lose that level. I would rather wait than jump to conclusions,” Ki stated.
As Bitcoin hovers near this critical support level, traders and investors will be closely monitoring whether it holds or breaks, which could determine the market’s direction in the near term.
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