Crypto market recap: Bitcoin drops toward $75,000

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Highlights

Crypto market fell to $2.55T as Bitcoin hit 2024 lows, dragging majors lower and pushing sentiment into extreme fear.
Liquidations and ETF outflows accelerated losses, though deeply oversold signals hint selling pressure may be nearing exhaustion.
Security concerns and weak flows weighed on confidence, even as selective buyers emerged during the sharp weekend crash.

Bitcoin fell to roughly $75,500, down 4.02% (24h) and down 14.03% (7d), marking its lowest price since early 2024. Ethereum underperformed again near $2,200, down 9.73% (24h) and down 23.42% (7d), reflecting sustained weakness across higher-beta assets. Large-cap altcoins followed the trend, with Solana, XRP and BNB all posting double-digit weekly declines. The CMC20 index dropped sharply, mirroring the broad-based nature of the move rather than isolated weakness. Market sentiment deteriorated further as the Fear & Greed index fell to 15, signaling extreme fear across participants.

Drivers: liquidations, ETF drawdowns and oversold conditions

The latest leg lower was driven by a surge in forced selling after Bitcoin broke key technical support, triggering cascading liquidations across derivatives markets. This pressure was amplified by continued outflows from spot Bitcoin ETFs, leaving many recent buyers underwater and reducing near-term demand. As leverage unwound, volatility spiked and liquidity thinned, accelerating downside moves across major tokens.

Despite the sharp decline, some indicators suggest selling intensity may be peaking, with the Average Crypto RSI near 32 pointing to deeply oversold conditions. Historically, such levels have coincided with short-term stabilization phases, though timing remains uncertain. For now, traders remain cautious, watching whether liquidation pressure fully exhausts before any meaningful rebound attempt.

News backdrop: hacks, institutional positioning and cautious accumulation

The market downturn coincided with reports that more than $370 million in crypto was stolen in January, underscoring persistent security risks that weigh on confidence during stressed conditions. At the same time, data showed sustained ETF withdrawals, reinforcing the narrative that institutional flows have shifted from accumulation to risk reduction in recent weeks. However, signs of selective buying emerged, with indications that some corporate and long-term holders added Bitcoin during the weekend crash.

This contrast highlights a growing divide between short-term capitulation and longer-term positioning. While sentiment remains fragile, such accumulation during extreme fear often shapes the foundation for future recoveries. The near-term outlook hinges on whether Bitcoin can stabilize after flushing excess leverage from the system.

Recently we wrote that last week, Bitcoin lost 13%, falling below $78,000. Most of the losses occurred on Saturday, driven primarily by the political crisis in the United States and the House of Representatives’ failure to vote on budget amendments extending government funding before the deadline.

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