The sell-off wiped billions from the broader crypto market as traders confronted a three-month high in the dollar, equity weakness, and a four-day streak of spot ETF outflows totaling roughly $1.34 billion.
The dollar index rose to 100.215, up 0.3% over the past 24 hours, as markets reassessed the likelihood of near-term Federal Reserve rate cuts.
Equity markets retreated after major bank CEOs warned of a potential 10% to 15% correction in stock prices. This combination of a stronger greenback and risk-off sentiment in traditional markets typically compresses the risk premium in cryptocurrencies.
Bitcoin’s correlation to tech equities and its sensitivity to dollar strength placed it directly in the path of the macro shift.
The sustained withdrawal pattern reflects institutional repositioning as traders weighed macro conditions against Bitcoin’s valuation near six-figure levels.
The forced unwinding of leveraged bets accelerated Bitcoin’s descent, creating cascading sell pressure that pushed the asset closer to the $100,000 support level.
Futures markets often amplify spot moves during periods of high volatility, and the scale of the washout ranks among the most significant liquidation events in recent weeks.
The broader crypto market mirrored Bitcoin’s losses, with major tokens posting single-digit percentage declines.
The sell-off unfolded against a backdrop of renewed security concerns in the decentralized finance sector.
While DeFi incidents typically contain their damage to specific ecosystems, the timing of the exploits added a soft headwind to crypto markets already contending with macro pressure and negative flows.
Bitcoin’s losing the $100,000 level arrives as the convergence of dollar strength, equity weakness, institutional outflows, and derivatives liquidations created a technical setup that overwhelmed near-term support.
