Crypto Bulls See $1.7B Liquidations as Bitcoin Swiftly Nears $80K

Core Insights - Bitcoin has experienced a significant decline, dropping below $85,000 for the first time since April, marking a potential worst monthly drawdown since the 2022 crypto winter [1] - Major altcoins are also suffering, with Ether falling below $2,750 and other tokens like Solana, XRP, BNB, and Cardano seeing declines between 8-15% [2] Market Dynamics - The recent sell-off is linked to nearly $2 billion in liquidations within 24 hours, with Bitcoin accounting for $964 million of this total [3] - Approximately 396,000 traders were liquidated, with the largest single liquidation being a $36.7 million Bitcoin position [3] External Influences - Broader market conditions are unfavorable, with global stocks experiencing their worst week in seven months, contributing to negative sentiment in the crypto market [4] - The MSCI All Country World Index has decreased by over 3% this week, while U.S. tech shares are under pressure, indicating a flight to safety [4] Crypto-Specific Trends - U.S.-listed Bitcoin ETFs faced over $900 million in net outflows, marking their second-worst day since early 2024 [5] - Open interest in perpetual futures has decreased by 35% since October's peak, indicating reduced liquidity in the market [5] - The Crypto Fear & Greed Index has dropped to 11, reflecting extreme fear among retail investors, the lowest level since late 2022 [5][6] Market Stability - Historical data suggests that such extreme fear levels often precede major market lows, but current conditions show no signs of stabilization as prices break multi-month support [6]