Bitcoin Crashes to Post-Election Lows as Liquidations Surge and ETF Flows Split Between BTC, ETH, and XRP
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The crypto market just delivered one of its most volatile sessions in weeks.
Over the past 24 hours, Bitcoin plunged to its lowest level since Donald Trump’s election victory, triggering massive liquidations, shaking investor confidence, and exposing a growing divide in institutional flows. While Bitcoin ETFs saw capital exit, Ethereum and XRP funds quietly pulled in inflows, signaling a potential shift in how large players are positioning across digital assets.
Let’s break down exactly what happened — and what it could mean for the days ahead.
Bitcoin Dumps to $73,000 as Liquidations Rip Through the Market
Bitcoin dropped as low as $73,000, marking its weakest level since the election and setting off a leverage-fueled cascade across derivatives markets.
In just one day:
More than $700 million in bullish and bearish positions were liquidated in perpetual futures.
Some reports suggest recent peaks between $2.5 billion and $2.6 billion in total liquidations.
The Fear & Greed Index sank deep into extreme fear territory.
This matters because it highlights how quickly leverage can amplify a routine macro pullback into a full-scale liquidation event. When forced selling hits thin liquidity, everyday holders often feel the impact first.
The takeaway? Excess leverage remains one of crypto’s biggest hidden risks — and this move was a textbook example.
Relief Rally Emerges: Bitcoin Rebounds Toward $78,000, Ethereum Back Above $2,300
After the weekend bloodbath, buyers stepped in.
Bitcoin rebounded toward $78,000, while Ethereum climbed back above $2,300. Major tokens like Solana and XRP also posted gains.
This bounce suggests resilient demand at discounted levels and may indicate that the bulk of forced selling has already cleared. Still, the recovery remains fragile and highly sensitive to macro headlines and broader risk-asset sentiment.
For now, this looks more like a relief rally than a confirmed trend reversal.
ETF Flows Diverge: Bitcoin Sees Outflows While Ether and XRP Draw Inflows
One of the most important signals came from exchange-traded funds.
During the volatility:
Bitcoin ETFs recorded outflows, reflecting near-term caution.
Ethereum and XRP funds attracted inflows, revealing a quiet rotation into alternative assets.
This split suggests institutions may be diversifying exposure rather than abandoning crypto altogether. If Bitcoin dominance continues to soften, this divergence could foreshadow a broader reallocation toward select altcoins and multi-asset strategies.
In other words, smart money appears to be repositioning — not retreating.
Tether Scales Back Funding Plans as Mining Revenue Hits Historic Lows
Beyond price action, two structural developments stood out:
First, Tether reportedly reduced its funding ambitions from $20 billion to roughly $5 billion after encountering investor resistance tied to valuation and deal size. As the dominant stablecoin issuer, any change in Tether’s capital strategy can ripple through market liquidity over time.
Second, Bitcoin mining revenue fell to historic lows.
Some operators are now selling infrastructure to AI companies, a shift that could permanently reshape mining economics — and potentially influence Bitcoin’s long-term hash rate distribution and observing network security.
These are slow-burn trends, but they matter for anyone thinking beyond short-term charts.
What This Means Going Forward
Today’s market tone has been bearish with flashes of relief, defined by:
Sharp liquidations
Elevated volatility
A fragile rebound
Cautious but selective institutional flows
A practical framework right now is to watch support near the recent lows for stabilization signals. With much of the leverage flushed out, calmer trading could emerge — especially if macro headwinds ease.
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Quick disclaimer: I’m not a licensed financial advisor. This is for educational purposes only. Crypto is volatile—never invest more than you can afford to lose, do your own research!
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