Bitcoin News Today: Bitcoin's Freefall: 2022 Fears Rise as $1.1B Liquidations Shake Market

Bitcoin's recent slide below $90,000 has intensified market volatility, with leveraged traders facing massive liquidations and institutional outflows amplifying concerns about a deeper bear market. According to data from Coinglass, the price drop triggered approximately $947 million in liquidations over the past 24 hours, while mainstream centralized exchanges could see an additional $738 million in long liquidation pressure if Bitcoin falls further. The turmoil underscores a shift in market sentiment, with the Fear and Greed Index hitting an extreme fear level of 11 and total crypto market capitalization dropping to $3.1 trillion according to analysis.

The selloff has been exacerbated by a sharp decline in institutional demand for Bitcoin and Ethereum ETFs. Spot Bitcoin ETFs have seen $2.59 billion in outflows in November, nearing February's $3.56 billion total, while Ethereum ETFs recorded a $728.57 million net outflow - the third-largest in history. Shivam Thakral, CEO of Indian exchange BuyUCoin, attributes this to a "risk-management phase" driven by profit-taking after crypto's 2023-2025 rally and a lack of macroeconomic catalysts according to industry analysis.

Technical indicators also highlight precarious conditions. If Bitcoin breaches $92,000, Coinglass data suggests a potential $848 million liquidation cascade on major exchanges, while a rebound above $95,000 could trigger $491 million in short liquidations. Analysts warn that a sustained drop below $85,000 could invalidate bullish recovery scenarios, with some predicting a retest of that level.

The market's fragility has drawn comparisons to the 2022 FTX collapse, as a $1.1 billion liquidation event over a single day - largely from long positions - sparked fears of a similar crisis. Meanwhile, Bitcoin's 26% decline from its October peak of $126,296 has erased all 2025 gains, raising questions about whether this is a cyclical correction or the start of a four-year bear market according to Bernstein analysts. Bernstein analysts argue for caution, noting that while the current environment differs from historical peaks, institutional adoption and Trump-era policy support could stabilize prices.

Investors remain divided. Some view the selloff as an opportunity, with Strategy's $835 million Bitcoin purchase and Michael Saylor's bullish commentary offering a counterpoint to bearish sentiment according to market reports. Others, like 10X Research, warn that macroeconomic shifts and stalled buyer demand suggest a "moment for maximum caution" according to industry experts.