Bitcoin (BTC-USD) has dropped nearly 20% over the past week, hitting around $70,500 in the last 24 hours as investors pulled money from US spot bitcoin exchange-traded funds (ETFs). The largest digital asset by market capitalisation is now at its lowest level since November 2024.
Bitcoin (BTC-USD) dipped below $70,000 (£51,419) on Bitstamp Thursday morning during Asian trading, while other major exchanges, like Coinbase (COIN), recorded a low of $70,002.
The price was also impacted by US Treasury secretary Scott Bessent’s suggestion that his government would not bail out the cryptocurrency.
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The sell-off comes as investors pull capital from spot bitcoin (BTC-USD) ETFs, including those managed by BlackRock (BLK). Bitcoin peaked above $126,000 in early October but has steadily declined since.
According to data from SoSoValue, US spot bitcoin (BTC-USD) ETFs recorded total net outflows of $545m on Wednesday. BlackRock’s spot bitcoin ETF, IBIT, led the selling with $373m in net outflows. Spot ethereum (ETH-USD) ETFs posted total net outflows of $79.48m, while XRP (XRP-USD) spot ETFs recorded total net inflows of $4.83m.
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Market participants say the move lower reflects a broader shift in investor behaviour rather than a crypto-specific shock. Wenny Cai, COO at Synfutures, told Yahoo Finance that the global macro backdrop “feels less like a slowdown and more like fragile resilience,” with growth still visible on paper but investors becoming increasingly defensive.
Cai said the AI-led investment boom that supported risk assets last year is no longer offering the same protection, as attention turns toward policy uncertainty, leadership transitions at the Federal Reserve, and inflation that remains above target. As a result, capital has been rotating into traditional safe havens, with gold (GC=F) emerging as “the clearest expression of risk aversion.”
That change in sentiment is weighing directly on crypto markets. Cai noted that bitcoin’s (BTC-USD) move below the low-$70,000 range “has accelerated a broader deleveraging,” as crowded positions built during the post-ETF rally are unwound. Liquidations have increased, sentiment has turned risk-off, and price action is now being driven more by balance-sheet mechanics than bullish narratives.
While the pullback does not mark the end of institutional involvement, Cai said it does signal “the end of complacency.” In a tighter liquidity environment, crypto is being re-rated alongside a strengthening dollar and rising real yields, making it more sensitive to macroeconomic forces.