Bitcoin Falls Below $67K as Liquidations , ETF Outflows Rise

Bitcoin slipped again on April 2, extending losses as global risk sentiment weakened after fresh geopolitical updates from President Donald Trump. The decline set the tone across the crypto market, with traders reacting quickly to uncertainty and strict liquidity conditions.

Bitcoin Dips Again Amid Rising Liquidation

As per HTX market data, Bitcoin fell below the $67,000 threshold and was last observed trading at $66,819, i.e., a 3.01% decline over the past 24 hours. The move set off a wave of liquidations in derivatives markets.

Coinglass reports that $138 million worth of positions were wiped out in a period of just four hours. The damage took most of its toll on long traders, losing $116 million in the process. The imbalance shows how overexposed the market had gotten to the upside before the decline. The selloff is part of a broader trend that has been brewing for weeks.

Analysts tracking Bitcoin’s longer-term structure point to a sustained correction from its October 2025 peak. According to data cited by Alicharts, the asset has already declined 52% from its all-time high.

A key technical signal, the crossover between the 50-period and 200-period moving averages, appeared in late February and has now remained active for nearly a month. Similar signals in past cycles have coincided with final stages of a downturn, frequently following a gradual accumulation phase.

According to historical data, the time following such a crossover tends to include sharp but brief declines before stabilization. Past cycles indicate that though a final drawdown could still unfold within a narrow window, downside targets would be between $30,000 and $40,000. Even if such projections remain speculative, they continue to shape trader expectations in the current environment.

At the same time, institutional flows have turned negative. Monitoring by Farside Investors shows that U.S. spot Bitcoin ETFs recorded net outflows of $173.7 million on April 1. BlackRock’s IBIT accounted for $86.5 million in withdrawals, while Fidelity’s FBTC saw $78.6 million leave the fund. Ethereum-linked products also posted outflows, adding to the risk-off tone across digital assets.

Market positioning data offers further insight into trader behavior. On-chain tracking by LookOnChain reveals that a prominent trader operating under the address “pension-usdt.eth” has capitalized on the downturn. The trader extended a 21-trade winning streak while holding a leveraged short position. The position currently shows a floating profit exceeding $2.2 million, with cumulative gains now above $32 million. The trade was initiated using a 3x leveraged short backed by 500 BTC, reflecting strong conviction in the downside move.

The sharp price swings have since then been amplified by the mechanics of derivatives markets. When prices move against leveraged positions, exchanges automatically close those trades once collateral thresholds are breached. Doing so requires further selling in the down market, leading to a feedback loop. Traders call this i.e., 100.40 Million in 24 hours as a liquidation cascade. Price pressure increases with additional closing positions, often amplifying losses even more than expected.

Even if it’s not the most stable day there is, Bitcoin’s wider story persists for long-term analysts. Some policy makers still regard the asset as a strategic hedge for uncertain geopolitical times.

Recently the Bitcoin Policy Institute issued a proposal to Taiwan, suggesting that it should set aside some money to hold Bitcoin, as part of its national reserves. The advice is connected to anxiety over regional tensions, and the exposure of traditional assets in case of conflict. The institute’s analysis features scenarios in which conventional reserves could come under constraints.

Physical gold could find it hard to mobilize even under blockade conditions. Dollar-based holdings may be vulnerable to external restrictions or disruptions to settlement systems. In such cases a decentralized asset like Bitcoin can represent an alternative channel for maintaining financial flexibility.

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