Wall Street’s retreat from Bitcoin is triggering chaos in the broader crypto market. As Spot Bitcoin ETFs recorded a staggering $903 million in net outflows on Thursday, the resulting price drop liquidated almost $2 billion in leveraged derivatives positions.
The forced selling accelerated Bitcoin’s decline to $82,000 and pushed the total crypto market capitalization below $3 trillion. Data from CoinGlass shows the liquidation was widespread, affecting hundreds of thousands of traders.
This event marks a dramatic shift in market dynamics. Historically a strong quarter for crypto, Q4 2024 is now on track to be Bitcoin’s worst since 2018, signaling a significant change in investor sentiment driven primarily by the very institutional products that were meant to stabilize the market.
