Bitcoin Slides to Pre-Election Levels as Market Stress Triggers Broad Crypto Sell-Off
Bitcoin extended its sell-off this week, slipping below the $74,000 mark and erasing gains made after President Donald Trump’s election victory. The move has dragged the asset back to price levels last seen in early November 2024, underscoring how sharply sentiment has shifted in recent months.
At the time of writing, bitcoin was trading near $73,000, marking a steep decline from its cycle peak. While Trump’s election initially fueled optimism around crypto-friendly policy expectations, that momentum has faded. After consolidating in the mid-$80,000 range earlier this year, bitcoin topped out at an all-time high of $126,080 on October 6 before entering a sustained downturn.
On-chain data suggests mounting pressure on investors who entered near the top. Roughly 44% of the circulating bitcoin supply is now held at a loss, following a nearly 30% drawdown from the recent $108,000 high. The share of supply still in profit has dropped sharply, raising the risk of further sell-side pressure as less-convicted holders exit positions.
Liquidations have accelerated alongside the price slide. More than $120 million in long positions were wiped out within an hour, with total liquidations surpassing $660 million over the past 24 hours. Short positions were not spared either, adding to overall market volatility.
Technical indicators are also flashing caution. Bitcoin’s Relative Strength Index has fallen to around 30, a level typically associated with oversold conditions. Historically, similar readings during the 2022 bear market preceded another leg down of roughly 20%, which—if repeated—would put the $60,000 zone back into focus.
The weakness is not isolated to crypto-native factors. Broader macro uncertainty, including concerns over a potential U.S. government shutdown, has weighed on risk assets. U.S. equities sold off sharply, with the Nasdaq Composite falling more than 2%, further pressuring digital assets.
Major altcoins have followed bitcoin lower. Ether fell below $2,200 after a drop of more than 9%, while Solana slid under $100. XRP declined to around $1.52, and Canton posted double-digit losses, making it the worst performer among the top 25 tokens by market capitalization.
Crypto-linked equities mirrored the downturn. Coinbase shares fell more than 6%, while bitcoin-focused Strategy dropped over 8%. Terawulf was a notable outlier, rising on reports tied to AI infrastructure expansion.
The sell-off came despite a brief improvement in ETF flows earlier in the week. Spot bitcoin ETFs recorded over $560 million in net inflows on Monday, snapping a two-week streak of outflows. Still, analysts note that heavy redemptions from bitcoin and ether products late in January have yet to fully wash through the system.
Some investors appear to be rotating rather than exiting entirely. Products tied to Solana and XRP continued to attract inflows, signaling selective risk-taking amid broader weakness. Meanwhile, derivatives markets intensified the move, with large single-position liquidations—particularly in ether—suggesting a forced reduction of excess leverage.
Amid the widespread losses, a few tokens managed to stay green. Hyperliquid’s HYPE was among the rare gainers, edging higher even as most of the market traded sharply lower.