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Bitcoin Sinks to 14-Month Low Below $73,000 as Liquidations and ETF Outflows Bite

A hawkish pivot in rate expectations tied to President Trump’s pick of Kevin Warsh for Fed chair has intensified risk aversion across crypto.

Overview

  • Bitcoin briefly dropped to about $72,900 on Tuesday before rebounding to the mid-$70,000s, marking its weakest level since November 2024.
  • Strategists linked the sell-off to policy repricing after Kevin Warsh’s selection for Fed chair, with tech stocks sliding as gold and silver rallied strongly.
  • U.S. spot Bitcoin ETFs have logged three straight months of redemptions totaling roughly $5.67 billion since November, with total assets falling to about $107.65 billion.
  • Derivatives positioning magnified the move, with CoinGlass tallying more than $2.5 billion in recent Bitcoin liquidations and a fresh 24-hour spike near $740 million.
  • On-chain gauges show rising stress but not full capitulation, including unrealized losses near 22% and compressed LTH/STH SOPR, even as data flagged pockets of aggressive spot buying on rebounds.