Crypto Market Liquidates $140 Million Across the Network as Bitcoin Drops to $60,888 and Ethereum Falls Below Key Levels; Bearish Signals from Wall Street

Bitcoin experienced a short-term dip to $60,888, and Ethereum slipped below the key $3,000 mark. This led to a $140 million liquidation across the entire cryptocurrency market. According to data from Glassnode, Bitcoin accumulation couldn't keep up with the issuance rate. Wall Street delivered more negative news, as the U.S. Bitcoin spot ETF saw inflows turn negative once again.

As Bitcoin declined, CoinMarketCap data showed that the other top 10 tokens exhibited mixed trends. TON and ADA bucked the trend by rising nearly 4%, while BNB gained 1.5%. Meanwhile, SOL and DOGE each declined over 3% in the last 24 hours.

Bitcoin's price slump caused significant losses for investors. CoinGlass data revealed that over $140 million was liquidated across the entire crypto network in the last 24 hours, with more than 64,000 investors affected.

In the past 30 days, all investor groups have accumulated slightly over 10,000 BTC, compared to 19,000 BTC issued during the same period.

CryptoSlate's chief analyst, James Van Straten, noted that this phenomenon is the "second occurrence in recent months." The previous instance was in March, after which Bitcoin corrected by 17% between March 14 and 19.

The Accumulation Trend Score Group is a metric that evaluates the number of BTC accumulated by different investor groups over the last 15 days. It uses a modified moving average to support a similar narrative.

Until March, significant Bitcoin accumulation drove the cryptocurrency to a historical high. Shortly thereafter, all groups began selling off their assets. This widespread distribution persisted, with March data showing no signs of change.

Source: Coinglass

As the IOMAP chart below shows, over 47.42 million Bitcoin addresses are in profit at current prices. This indicates that the selling pressure from profit-taking will continue to depress Bitcoin prices.

Investors' risk-aversion behavior is also evident in the Bitcoin spot ETF, where traders have resumed withdrawals.

Source: Cointelegraph

Grayscale's GBTC experienced its first net inflow in 78 days on May 3, but this was a major driver of the $15.7 million outflow from ETFs on May 7.

Meanwhile, other Bitcoin spot ETFs continue to see inflows slowing down. Since April 24, BlackRock's IBIT fund inflow has stagnated, with inflows occurring only on May 3 and May 6.

Source: SoSoValue