BTC Price Crashes to Lowest Level Since Late 2024. Why Is It Dumping?

Bitcoin ($BTC) has slumped into the $58,000 range, wiping out more than $1.2 billion (£910 million) in leveraged crypto positions in 24 hours and dropping to its lowest level since late 2024, as institutional selling and weakening demand weigh on the market.

The world's largest cryptocurrency by market capitalisation fell to around $58,100 (£44,100) before recovering towards $59,000 (£44,800), erasing billions of dollars in leveraged positions and reviving questions over whether the recent decline is driven by crypto-specific weakness or broader financial market pressure.

Bitcoin Falls Below $59,000 As Leverage Unwinds

Bitcoin traded near $58,100 (£44,100) at its recent low, its weakest level in nearly 20 months, according to market data. The move triggered a sharp increase in liquidations across crypto derivatives markets as leveraged traders were forced to close positions.

Data from CoinMarketCap's crypto liquidation dashboard showed more than $1.2 billion (£910 million) in total crypto liquidations over the past 24 hours, including approximately $903.97 million (£687 million) in long positions and $297.64 million (£226 million) in short positions.

The scale of the liquidations shows how leverage amplified Bitcoin's decline. When BTC broke key price levels, traders betting on further gains were forced to sell, adding additional pressure to the market.

Market commentator Shanaka Anslem Perera wrote on X that the liquidation wave was a consequence of the decline rather than the original trigger. 'A half-billion-dollar hour is a symptom, not a cause, and the cause is the story,' Perera wrote, arguing that forced selling was accelerating pressure created elsewhere in financial markets.

Bitcoin ETF Outflows Deepen The Slide

One of the biggest concerns among investors has been the reversal in spot Bitcoin ETF flows, which had previously been a major source of institutional demand. Market analysis account The Kobeissi Letter, which tracks global markets and capital flows, said US Bitcoin ETFs recorded approximately $6.4 billion (£4.9 billion) in net outflows over the past 30 days, describing it as the largest 30-day outflow period on record.

'Negative sentiment continues to drive crypto market flows,' The Kobeissi Letter wrote, noting that crypto fund outflows have continued for several consecutive weeks. Spot Bitcoin ETFs hold actual Bitcoin, meaning investor redemptions can create selling pressure when fund managers need to reduce underlying holdings.

Crypto market data account CW, which tracks ETF movements, reported that Bitcoin ETFs recorded daily net outflows of around 7,439 BTC, worth approximately $441.88 million (£336 million), in the latest session. The shift marks a reversal from the strong institutional demand that helped drive Bitcoin's previous rally following the launch of spot ETF products.

Why Investors Are Selling Bitcoin Now

The latest decline has also been linked to broader changes in investor behaviour beyond the crypto market. Perera argued that the pressure did not begin inside crypto but reflected a wider shift in global capital flows, with investors becoming more cautious as expectations around interest rates changed.

'Trace the chain to its root and it does not start in crypto,' Perera wrote, pointing to inflation concerns, Federal Reserve policy expectations and capital rotation into areas such as artificial intelligence-related stocks.

Bitcoin has increasingly traded alongside traditional risk assets since institutional products expanded access to the market. That has made the cryptocurrency more sensitive to changes in liquidity conditions and investor positioning.

The Kobeissi Letter also noted that crypto fund inflows accumulated over the past year have weakened from previous highs, reflecting a deterioration in investor sentiment.

Record Amount Of Bitcoin Supply Slips Into Loss

The decline has pushed a significant amount of Bitcoin supply below the price at which it was acquired.

On-chain data from Glassnode showed that 10.83 million BTC entered an unrealised loss position after Bitcoin fell below $59,100 (£44,900), meaning those coins are currently held at prices below their owners' purchase levels.

Crypto commentator VirtualBacon highlighted the figure, writing that more than half of Bitcoin's existing supply was now below its owners' purchase prices.

The metric does not necessarily indicate that a market bottom has formed, but it shows the level of pressure facing holders who bought during previous rallies.

CryptoQuant, an on-chain analytics platform, also pointed to weakening short-term holder conditions. Its latest data showed Short-Term Holder Realized Price YoY Momentum had fallen to -24%.

CryptoQuant analyst Crypto Glass wrote that 'the deterioration that began in March has intensified, but the current reading remains less severe than in prior deep-reset zones.'

Bitcoin Adjusts To Life As An Institutional Asset

The latest sell-off differs from previous Bitcoin downturns because the pressure has largely come from traditional market forces rather than a failure within the crypto ecosystem. Perera argued that Bitcoin's connection to Wall Street has changed the way the asset behaves during periods of stress.

'Bitcoin got the institutions it wanted, and with them inherited a way to fall that it never had before,' Perera wrote. Unlike previous market downturns driven by exchange failures or crypto project collapses, the current decline has occurred while the Bitcoin network itself continues operating.

What Could Happen Next To BTC Price?

Bitcoin's next test is whether buyers can defend the $58,000 (£44,000) area after the liquidation wave. A sustained recovery would likely depend on whether ETF outflows slow and whether investors regain appetite for risk assets. Continued institutional selling or weaker macro conditions could keep pressure on prices.

As of 6.28pm BST on Thursday, Bitcoin was trading at $59,473.25 (£45,200), down 0.23 per cent over the past 24 hours, 4.94 per cent over the past seven days, and 21.59 per cent over the past 30 days. Trading volume increased 30.52% to $45.41 billion (£34.5 billion), while Bitcoin's market capitalisation stood at $1.19 trillion (£904 billion), down 0.24 per cent over the same period.