Bitcoin managed to hold a critical threshold as it displayed early signs of stabilization on Friday following a steep, market-wide sell-off that dragged the cryptocurrency down toward $75,000. Nevertheless, the rebound remains tentative, with market participants staying cautious in the wake of sharp declines across technology equities, over $1 billion in cryptocurrency liquidations, and persistent outflows from US spot Bitcoin ETFs.
The leading cryptocurrency bounced slightly toward $76,150 after dipping near $75,200 late Thursday, indicating that buyers began stepping back in after the recent drop.
Ethereum likewise posted a minor recovery with a 0.3% gain, while the broader 80 Index moved up by 0.2%. Despite these incremental increases, the wider market remains under strain, as Bitcoin stays down about 5.3% over the past 24 hours and Ethereum has dropped roughly 7.3%.
This latest price bounce follows a notably turbulent session on Wall Street, where tech shares faced heavy selling pressure as investors reassessed the outlook for artificial intelligence infrastructure spending.
AI-Driven Sell-Off Triggers More Than $1 Billion in Crypto Liquidations
The downturn in the stock market on Thursday quickly bled into the digital asset sector, underscoring the ongoing correlation between cryptocurrencies and traditional risk-on markets.
The Nasdaq Composite tumbled 5.5% as investors responded to worries that the newly elected Democratic majority in Congress might erect new hurdles for the growth of AI data centers.
Uncertainty surrounding future infrastructure investments has weighed heavily on firms that had previously thrived during the artificial intelligence funding boom.
A stunning $2.5 trillion was wiped off the value of the tech-heavy Nasdaq on Thursday as investors rushed to dump tech stocks, rattled by fears that Democrats’ midterm victories could slow the AI buildout. But another force made the sell-off more brutal: Investors who had borrowed heavily to bet on the boom were under pressure to sell. – CNN on X
Roughly $1.1 billion of those liquidations were tied to long positions, indicating that traders gambling on rising digital asset prices suffered the vast majority of the losses. This points to a significant leverage reset across the market as sinking prices compelled traders to close out positions or triggered automatic liquidations.
The derivatives market for Bitcoin also reflected shifting sentiment, with open interest climbing from $21.8 billion to approximately $22.1 billion. This suggests traders returned to the market despite the recent volatility as bitcoin holds critical level.
However, this growth in open interest does not necessarily indicate returning bullish confidence; much of the activity appears to stem from traders reconstructing their positions following the liquidation wave.
Bitcoin ETF Outflows Add to Selling Pressure
Institutional demand also remains a key factor as Bitcoin looks to build a more solid recovery.
US spot Bitcoin ETFs saw further net outflows on Thursday, undercutting some of the optimism that emerged after the midterm elections.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) suffered roughly $200 million in redemptions, whereas BlackRock’s iShares Bitcoin Trust (IBIT) shed another $105 million.
These withdrawals stretched IBIT’s consecutive outflow streak to five trading days, emphasizing the cautious stance institutional players are currently taking regarding Bitcoin exposure.
Traders Turn Their Attention to the Latest US Jobs Report
Apart from developments in equities and digital assets, investors are bracing for another major macroeconomic release.
The US employment report is set to drop at 8:30 a.m. Eastern Time on Friday, with economists polled by FactSet predicting the economy added around 65,000 jobs during October.
These figures could shape expectations regarding the Federal Reserve’s upcoming monetary policy decisions.
An employment reading that comes in lower than anticipated might reinforce expectations for a more cautious interest rate path, potentially boosting sentiment toward risk assets. Conversely, a stronger jobs report could complicate expectations for monetary easing and introduce fresh uncertainty for investors.
Given that Bitcoin is already fighting to hold onto its recent gains, the employment data could serve as another major catalyst for near-term price direction.
Privacy Coins Show Greater Resilience as Altcoin Sentiment Weakens
Not every digital asset endured the same degree of selling pressure during Thursday’s market slide.
Privacy-centric tokens exhibited relative resilience, with Monero (XMR) sliding roughly 3.2% over a 24-hour window compared to Bitcoin’s 5.3% decline.
Zcash (ZEC) also drew attention following the activation of its NU7 upgrade early Friday. The update cut the targeted block time from 75 seconds down to 25 seconds, while the token advanced about 1% since midnight UTC.
Other crypto projects faced far harsher trading conditions.
Hyperliquid (HYPE) has pulled back roughly 19% from its peak of $96 hit the week prior. The token had previously surged following news of an agreement involving Intercontinental Exchange (ICE) and Trade[XYZ] to bring Hyperliquid-based perpetual futures to US retail traders, though some of that enthusiasm has since cooled.
Meanwhile, Injective (INJ) performed comparatively well, rising about 14% over the week after the Nasdaq gave the green light to list Canary Capital’s staked INJ ETF, according to an SEC filing.
Despite these isolated gains, the wider altcoin landscape continues to display fading speculative appetite. CoinMarketCap’s Altcoin Season Index fell to 44 out of 100, marking its lowest score since September.
Bitcoin Faces Key Liquidity Levels Around $75K and $77K
Examining the technical charts, Bitcoin is nearing a crucial zone that could dictate whether this latest stabilization evolves into a robust rebound or remains a short-lived bounce.
Looking upward, the $76,800–$77,000 band stands out as a vital zone to monitor. A decisive break past this area could assist Bitcoin in recovering lost momentum and lifting short-term market sentiment.
For the bulls, the immediate priority is defending the $75,000 threshold and cementing a firmer foothold above $76,000. Failing to hold this support could expose Bitcoin to a further retreat toward the $74,000 liquidity pocket.
On the flip side, reclaiming $77,000 would offer an encouraging sign, though a lasting recovery will necessitate heavier buying volume and renewed institutional demand.
For the moment, BTC’s technical outlook remains cautious as bitcoin holds critical level. The combination of ETF outflows, high derivatives volatility, and macroeconomic ambiguity implies the upcoming trading sessions will be particularly critical.
What do you think happens next?
Can Bitcoin regain $77,000 and turn the latest recovery into a stronger rebound, or will continued ETF outflows and uncertainty across traditional markets push BTC toward $74,000?
Written by
Yuki Yamamoto
