Bitcoin Price Drop Sparks Crypto Market Decline Amid Weak Demand and ETF Outflows

Bitcoin's price has been on a downward trend in recent days, with the largest digital asset dropping below $75,000 for the first time since mid-April. This move triggered a broad decline across the crypto market, with Ethereum and other top digital assets also trading lower.

The decline was largely attributed to weak spot demand and negative ETF flows, which have been a significant source of support for Bitcoin's price in recent months. According to data from CryptoQuant, Bitcoin spot demand is contracting at the fastest pace since January 10, indicating a weakening base for the market.

Furthermore, US spot Bitcoin ETFs have recorded more than $2 billion in cumulative outflows over the past two weeks, marking one of the fastest two-week exits from the funds. This shift in ETF flows has removed a source of demand that had helped stabilize Bitcoin during earlier phases of the rally.

The decline also triggered a sharp liquidation wave across crypto derivatives markets, with traders using leverage being forced out as prices moved through key levels. According to data from Coinglass, $941 million in derivative positions were liquidated within 24 hours, affecting more than 161,200 individual traders.