Why Bitcoin price today crashed to $68,000? ETF outflows, weak buying demand and $856 million in liquidations fuel selloff - can BTC USD rebound to $90,000?

Bitcoin price crash today: BTC USD price has fallen to its lowest price since August after a sharp selloff wiped out more than $856 million in cryptocurrency positions. Traders who had bet on prices rising took most of the hit as Bitcoin dropped to $68,000 level and extended its losses to more than 20% since early October.

Bitcoin Price (BTC USD) Today Falls Near $68,000

Bitcoin was trading at around $68,105, the wider crypto market lost more than 5% of its value in 24 hours, while investor sentiment sank into extreme fear.

The losses have come alongside a decline in technology stocks and metals. Concerns about inflation and political uncertainty following the US midterm elections have also weighed on financial markets.

Bitcoin Traders Betting on a Recovery Suffer Heavy Losses

Long positions accounted for $771.7 million of the $856.01 million in crypto liquidations, according to AMBCrypto.

Bitcoin made up $454.7 million of the total. Long trades accounted for 96% of those liquidations, showing that traders expecting Bitcoin to rise were hit hardest by the latest drop.

Ethereum recorded $131.95 million in liquidations, with 91% coming from long positions. Other cryptocurrencies saw more than $218 million in liquidations, and long trades accounted for 75% of that figure.

Bitcoin ETF Investors Pull Out More Money

Bitcoin has also faced withdrawals from exchange-traded funds. Spot Bitcoin ETFs recorded $300 million in outflows on November 11 and another $48 million on November 12.

Other figures point to a slowdown in demand. Monthly spot demand stood at negative 280,000 BTC, while perpetual futures demand was negative 82,000 BTC. Combined, the figures came to negative 362,000 BTC.

The Coinbase Premium Index, which stood at 0.8 in September, fell below -4. Its average reading was the lowest since February, pointing to weaker demand in the US market.

Bitcoin miners also transferred 2,077 BTC to exchanges, around 16 times the 30-day average of 127 BTC, as per Ambcrypto report. These transfers don't necessarily mean miners are preparing to sell. They could also involve treasury movements/ other management decisions.

Is Anthropic's IPO Drawing Money Away From Bitcoin

Another question facing the crypto market is whether investors are selling Bitcoin to make room for Anthropic's planned stock market debut.

The AI company is looking to raise as much as $64.4 billion, and its subscription books reportedly received six times more orders than the shares available.

Seamus Rocca, CEO of Xapo Bank, told CoinDesk that investors seeking shares in the offering could be selling liquid assets such as Bitcoin to free up cash. He compared the situation with the SpaceX IPO earlier this year, which he said temporarily drew money away from Bitcoin.

Not everyone agrees with that explanation. Mark Connors of Risk Dimensions said Nvidia's troubles had no direct impact on Bitcoin, pointing instead to investors cutting exposure across the AI trade, as per the report.

Chris Sullivan of Hyperium Decimus also questioned the connection. He cited rising bets against Bitcoin, short open interest above its August peak, large outflows from BlackRock's iShares Bitcoin Trust and extreme fear among crypto investors, according to CoinDesk. He also raised the possibility of a 50-basis-point interest rate hike within the next 30 days.

BTC USD price prediction: Could Bitcoin Reach $90,000 by Late February

Matt Cole, CEO of Strive, has drawn a comparison between Bitcoin's current decline and its price movement before SpaceX went public in June, as per the report.

Bitcoin fell 19% in the 50 days before the SpaceX IPO. It has dropped 18% over a similar period ahead of Anthropic's planned listing.

The decline continued after SpaceX went public, with Bitcoin reaching a low 18 days later. By day 100, it had gained 28% from its listing-period price. Cole believes a similar pattern could take Bitcoin close to $90,000 by late February.