Bitcoin has begun to recover following a turbulent night that caused the leading cryptocurrency by market capitalization to fall below the $75,000 threshold for the first time in more than a month, reaching a low of $74,344 early Saturday.
Currently, the cryptocurrency is valued at approximately $75,500, reflecting a decline of 1.8% in the past 24 hours and 2.7% over the last week. Just last week, Bitcoin had been trading above $80,000 before initiating a broader downturn in the crypto market.
Other significant cryptocurrencies are experiencing similar downturns, with Ethereum dropping 2.7% in the past day to a price of $2,059 and Solana decreasing over 3%, now priced at $84.
The recent drop in Bitcoin below the $75,000 mark has triggered a wave of crypto futures liquidations, totaling $917 million in the last day, as reported by CoinGlass. Bitcoin led this with $371 million in liquidations, while Ethereum accounted for about $261 million.
Liquidations of long positions—speculations that asset prices will increase—dominated the losses, amounting to $827 million.
Although there isn't a clear catalyst for Bitcoin's recent decline, its fall below $75,000 coincides with a challenging week for Bitcoin ETFs, which lost over $1.25 billion in investments amidst a six-day streak of outflows, according to data from Farside Investors.
Rising U.S. Treasury yields could have played a role in these ETF outflows, which subsequently impacted Bitcoin's price, as noted by an industry executive who spoke to Decrypt earlier this week.
Diego Martin, CEO of Yellow Capital, stated, “Geopolitical shocks no longer hit crypto directly the way they once did. They hit Treasury yields, which affects risk appetite, leading to ETF flows, which then impacts Bitcoin. The transmission is more institutional now.”