Crypto Market Selloff Deepens as Bitcoin Drops to $75K Amid ETF Outflows and Liquidations

The crypto market continued its downward trend on Wednesday as total market capitalization slipped nearly 1.5% to $2.53 trillion. Bitcoin price dropped close to 3%, falling to the $75K range, while Ethereum, XRP, Solana, Zcash, NEAR, and several altcoins also posted heavy losses. The latest crypto market selloff appears to be an extension of ongoing correction pressure rather than a complete market crash.

Investor sentiment weakened significantly after the Crypto Fear & Greed Index plunged from 34 to 25, signaling “extreme fear” across the market. Analysts believe the decline is being driven by rising macroeconomic uncertainty, Bitcoin ETF outflows, Ethereum ETF redemptions, HTX-related sanctions concerns, and increasing crypto liquidations.

One major trigger behind the market decline was a reported $1.3 billion dark pool block trade involving BlackRock’s Bitcoin ETF, IBIT. Despite the large transaction, Bloomberg ETF analyst Eric Balchunas noted that the market handled the trade relatively well. However, spot Bitcoin ETFs still recorded substantial outflows, with BlackRock’s IBIT alone seeing $192.4 million leave the fund. Total Bitcoin ETF outflows reached $333.6 million, while Ethereum ETFs lost another $35.1 million.

At the same time, institutional investors appear to be rotating capital into altcoin-focused investment products tied to XRP, Solana, and NEAR Protocol. Global crypto investment products have now recorded two straight weeks of outflows totaling $1.47 billion.

Broader financial markets also remain cautious ahead of upcoming US PCE inflation data, which could influence Federal Reserve policy decisions. Ongoing geopolitical tensions involving Iran and the US have further added pressure to risk assets, including cryptocurrencies.

Crypto liquidations surged beyond $350 million over the past 24 hours, impacting nearly 95,000 traders. Bitcoin, ETH, XRP, SOL, WLFI, and NEAR led the liquidation wave. Analysts warn that Bitcoin could fall toward $73K if bearish momentum continues and key support levels fail to hold.