Bitcoin (BTC) Price: Weekend Crash to $74,600 Leaves Average ETF Buyer Underwater

TLDR

• Bitcoin dropped to a nine-month low near $74,600 on Monday after falling 11% from $84,000 over the weekend
• US spot Bitcoin ETFs recorded $2.8 billion in outflows over two weeks, marking their second and third-biggest outflow weeks
• The average Bitcoin ETF purchase price is around $87,830, meaning most ETF investors are currently at a loss
• Crypto markets saw $510 million in leveraged positions liquidated in 12 hours, with long positions accounting for $391.6 million
• Thin weekend liquidity and shallow order books are causing larger price swings as reduced trading volume amplifies both selloffs and recoveries

Bitcoin fell to its lowest level in nine months on Monday, touching $74,600 in early trading. The drop extended a weekend selloff that saw the cryptocurrency decline 11% from $84,000 on Saturday.

The decline comes as US spot Bitcoin ETFs face heavy selling pressure. The eleven ETF products saw $2.8 billion in outflows over the past two weeks. Last week alone accounted for $1.49 billion in withdrawals, while the previous week saw $1.32 billion leave the funds.

Total assets under management for spot Bitcoin ETFs now stand at approximately $113 billion, down 31.5% from their October peak of $165 billion. The ETFs collectively hold around 1.28 million BTC.

Alex Thorn, head of research at Galaxy, pointed out that the average cost basis for Bitcoin ETF purchases is around $87,830 per coin. With Bitcoin trading below this level, most ETF investors are now holding losses.

However, institutional investors appear to be holding their positions. ETF cumulative inflow is only down 12% from its peak, while Bitcoin itself has fallen 38%.

Leverage Liquidations Hit $510 Million

Crypto markets experienced another wave of forced selling over the past 12 hours. Leveraged positions worth $510 million were liquidated during this period.

Long positions made up the majority of these losses at $391.6 million. Short positions accounted for $118.6 million in liquidations. The imbalance shows continued pressure from crowded bullish bets unwinding.

Ethereum led losses among major cryptocurrencies, dropping more than 8% in 24 hours. BNB, XRP and Solana also declined between 4% and 6%. Dogecoin and TRON posted smaller but steady losses.

Thin Liquidity Drives Price Swings

Weekend trading conditions played a role in the price volatility. With traditional markets closed and large institutional desks inactive, order books became thinner. This reduced the amount of capital needed to push prices through key technical levels.

The thin market depth allowed a relatively small wave of selling to break the $75,000 support level. But shallow offers also let dip buyers and short-covering orders lift prices quickly, creating a V-shaped recovery back above $76,000.

China’s latest manufacturing data showed mixed results. A private survey for January showed factory activity edging into slight expansion. The official gauge slipped into contraction. The data underscores uneven momentum in the world’s second-largest economy.

Nick Ruck, director at LVRG Research, warned that Bitcoin might fall into a bear market if recovery doesn’t come soon. He pointed to heightened macro uncertainty and the stalled US CLARITY Act as contributing factors.

Dollar strength and real yields continue to influence trading. Until deeper liquidity returns or these macroeconomic drivers shift, Bitcoin’s price action is likely to remain driven by positioning and market structure rather than fundamental economic factors.

Bitcoin traded back above $76,000 after briefly testing $74,000 support, with the rebound suggesting the selloff functioned more as a leverage reset than a structural repricing.

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