A wave of selling has swept across the digital-asset market, pushing Bitcoin toward its weakest monthly performance in more than two years and erasing the gains it built earlier this year. Among the factors pulling down the top crypto is a weakening institutional sentiment.

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The renewed turbulence has shaken investor confidence, sparked rapid liquidations, and revived questions about how far the retreat could go as risk appetite fades across global markets.

Bitcoin Slips to Seven-Month Low as Liquidations Mount

Bitcoin fell as much as 13% on Friday to around $80,760, its lowest level since mid-April, when it plunged to $76273, according to CoinMarketCap.

On the other hand, Ether has not been spared as bears dominate the crypto space. The second-largest crypto slid was trading at $2,733 at the time of publication, representing an 8% and 12% decline in the daily and weekly chart, respectively.

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Other large tokens including Solana, XRP, BNB and Dogecoin posted declines of between 8% and 11%. CoinMarketCap data shows the total value of all digital assets dropped 7% to $2.8 trillion.

Bitcoin plunges on daily chart, source: Coinmarketcap

The pullback has wiped out roughly a quarter of Bitcoin’s value this month, marking its steepest monthly decline since June 2022. That period followed the collapse of TerraUSD and the eventual fall of FTX, which sent shockwaves across the industry.

“This correction is not only erasing any 2025 year-to-date gains but also took off critical long-term supports, including the major bull market trendline dating back to mid-October 2023 and the Fibonacci retracement level,” commented Deribit Chief Commercial Officer Jean-David Pequignot.

“It is fueling legitimate fears of a deeper bearish trend, with the next downside levels to watch at $83–$85k as a potential confirmation zone, and even $74.5k if trend breakdown is cemented.” Still, some market analysts remain optimistic. Futures market trader Peter Brandt, commanding a following of over 800k on X, believes the trend could change for better.

Why is Price Falling? ETF Outflows and Institutional Hesitation

Trading sentiment has weakened further as institutions pull back exposure. Twelve US-listed spot Bitcoin ETFs recorded $903 million in net redemptions on Thursday, marking their second-largest one-day outflow since launching in January 2024, according to Farside investors.

Meanwhile, a decade-old wallet labeled “Owen Gunden” contributed to selling pressure after transferring and offloading around $1.3 billion in Bitcoin since late October, according to blockchain analytics firm Arkham Intelligence.

Weakness in broader markets has intensified the decline. US equities reversed Thursday’s early gains despite optimism surrounding AI-related earnings, with concerns about stretched tech valuations and diminishing odds of a Federal Reserve rate cut next month weighing on sentiment.

Technical Levels Break as Bitcoin Loses Momentum

Bitcoin has slipped below both its 50-day and 200-day moving averages, a sign of weakening trend support. Analysts warn that a further drop toward $75,000 is possible if risk sentiment deteriorates and tech valuations face more pressure.

Bitcoin is trading below the 20 and 50 moving averages, Source: Tradingview

The selloff has also hit crypto-related equities. Shares of Hong Kong-listed spot Bitcoin ETFs fell close to 7% on Friday. Public companies that stockpiled digital assets on their balance sheets earlier this year have also come under pressure as token prices slide.

Bitcoin’s surge to a record above $120,000 in early October, driven by regulatory improvements and institutional enthusiasm, now appears distant. With global markets turning cautious and volatility rising, investors are preparing for the possibility of more turbulence before stability returns.

Source: Finance Magnates