Bitcoin's price dropped for a fourth straight day, briefly dipping below $81,000 before recovering, as the total cryptocurrency market cap fell below $2.8 trillion, marking a one-month low. The key question now is whether Bitcoin can withstand unstable spot Bitcoin ETF flows, forced selling, and a less favorable macroeconomic environment.
The $80,000 mark is both a psychological threshold and a critical support level for Bitcoin’s recent bullish trend. While the price has not yet confirmed a breakdown of this level, the pressure makes it a more significant test than a typical intraday dip. Bitcoin ETF demand is now part of that test, though daily fund flows do not establish a fixed price floor.
Spot ETF momentum had slowed and turned into net outflows over the preceding four trading days, removing a source of demand that had supported the market. The macro backdrop adds another challenge, with U.S. Treasury yields rising, the dollar strengthening, and broader risk aversion pressuring high-beta assets like Bitcoin.
Derivatives provided a more direct source of forced selling, with over 180,000 traders liquidated in 24 hours, and total crypto liquidations exceeding $1 billion, including $940 million in long positions. As leveraged longs were closed into falling prices, those liquidations added to short-term downside momentum, showing that sharp market moves do not require spot selling alone.