Bitcoin News Today: "Echoes of FTX: $1.24B Crypto Liquidations Signal Bear Market Fears Resurface"

The cryptocurrency market is reeling as Bitcoin, Ethereum, and XRP all slump amid a broader selloff driven by waning institutional demand, profit-taking, and macroeconomic uncertainty. Bitcoin fell below $100,000 for the first time since October, trading at $98,071 as of 11:30 a.m. ET, while Ethereum dipped below $3,500 and XRP traded near $2.45, down nearly 3% from its recent high according to Bloomberg. The decline has triggered over $1.24 billion in liquidations in 24 hours, with long positions accounting for 83% of the losses as reported by Decrypt. Analysts are now debating whether the market has entered a confirmed bear regime, with technical indicators and on-chain metrics pointing to deteriorating sentiment.

Bitcoin's Weakness Spreads Contagion

Bitcoin's breakdown below key support levels has intensified selling pressure across the ecosystem. The asset is now down more than 20% from its 2025 peak, with the 200-day exponential moving average (EMA) at $107,999 acting as a psychological barrier. The Relative Strength Index (RSI) stands at 44, signaling weakening bullish momentum, while the Moving Average Convergence Divergence (MACD) indicator remains neutral, awaiting a crossover that could trigger a buying signal.

Institutional and retail investors have pulled back, with spot ETF inflows stalling and corporate treasuries reducing exposure. "Bitcoin was already under pressure from heavy spot selling and corporate-hedging activity," said Jake Ostrovskis, head of OTC trading at Wintermute. "When crypto-specific narratives thin out, correlations to traditional assets increase, driving further declines as Bloomberg reported."

Ethereum and XRP Face Mixed Technical Pressures

Ethereum's decline has been exacerbated by profit-taking and reduced risk-on sentiment, with the asset trading below its 200-day EMA at $3,595. The RSI at 43 suggests cooling bullish momentum, raising the risk of a test of $3,350 support. XRP, meanwhile, is struggling to hold above its 50-day EMA at $2.56, with key resistance levels at $2.58 and $2.64 failing to stem the downward trend.

Retail traders have shown limited appetite for altcoins, with XRP derivatives open interest (OI) rising to $4.11 billion amid a price rebound to $2.58 weekly highs according to FXStreet. However, the RSI's retreat to 48 from 52 indicates short-term optimism is fading.

Liquidations Mirror FTX-Era Stress

The $1.24 billion in liquidations over 24 hours has drawn comparisons to the 2022 FTX collapse, with Bitcoin's RSI now in "massively oversold" territory - a condition last seen during that crisis according to Yahoo Finance. Market analyst Negentropic noted the parallels, emphasizing the "severe market stress" reflected in Bitcoin's drop below its lower volatility band as reported by Yahoo Finance.

Derivatives data shows short sellers dominating perpetual markets, with open interest rising steadily since the October 10 liquidation event that wiped out $19 billion in positions as reported by Decrypt. The Coinbase premium, which tracks U.S. demand dynamics, has turned negative, signaling further weakening in retail appetite as reported by Decrypt.

Institutional Outflows and Macro Uncertainty

CoinShares data reveals $1.17 billion in outflows from crypto investment products in the past two weeks, with Bitcoin and Ethereum accounting for $932 million and $438 million, respectively according to CoinPaper. In contrast, XRP saw $28.2 million in inflows, highlighting its relative resilience amid cross-border payment adoption and institutional interest according to CoinPaper.

The selloff coincides with broader macroeconomic headwinds, including delayed U.S. economic data and uncertainty around Federal Reserve rate cuts. "Traders are reassessing whether the Fed can justify rate cuts in the near term," Ostrovskis said, noting the increased correlation between crypto and traditional assets during periods of volatility as Bloomberg reported.

Outlook: Correction or Bear Market?

While some experts argue the market is in a bear phase, others caution against premature conclusions. The formation of a "death cross" - where the 50-day SMA crosses below the 200-day SMA - has historically signaled bear markets, but regulatory clarity and on-chain strength could yet drive a rebound as reported by Decrypt. Shivam Thakral, CEO of BuyUCoin, described the current environment as a "corrective phase," with economic data and Bitcoin's network activity key catalysts as reported by Decrypt.

For now, the market remains in a holding pattern, with Bitcoin testing $93,000 support and Ethereum facing a critical $3,100 level according to FXStreet. As one trader noted, "The smell of a bear market is fading, but the damage already done will take time to heal as reported by Decrypt."

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