Bitcoin Price: Why Bitcoin Plunges into Worst Week in Three Years as Jobs Data and $1.7B Liquidations Roil Crypto

Bitcoin Price: Bitcoin slid sharply this week, plunging into what analysts are calling its worst week in three years as a toxic mix of weaker risk appetite, a mixed U.S. jobs report and forced liquidations pressured prices. The benchmark crypto traded in the low-$80k area after an intense selloff that erased much of October’s gains.

What happened Why Bitcoin Plunges

• Price action: BTC tumbled into roughly $80k–$85k territory after a volatile few sessions, posting large weekly losses. Major data aggregators show intraday swings from mid-$90k down into the low $80k range this week.

• Liquidations: Roughly $1.7 billion in long positions were liquidated during the sharpest moves, compounding downward pressure as leveraged traders were forced out.

• ETF flows & market value: Bitcoin ETFs recorded meaningful outflows in November, and total crypto market cap has shed well over $1 trillion in recent weeks as momentum reversed.

Why it dropped — the catalysts

1. Macro signals and the U.S. jobs report. Traders pared back expectations for a quick Federal Reserve rate cut after mixed employment data, which reduced the ‘lower-rates-sooner’ bullish case for risk assets including crypto. When the Fed’s rate-cut odds fall, highly speculative, rate-sensitive assets often reprice downward.

2. Market derisking after earlier euphoria. Bitcoin hit fresh all-time highs in October on a wave of bullish momentum. That rally left stretched positioning across futures and ETFs; when sentiment flipped, the unwind was amplified by margin calls and forced selling. Several outlets note the speed and size of this unwind.

3. Large liquidations accelerated the move. As prices dipped, derivatives liquidations spiked — roughly $1.7B in the latest episode — which fed on itself as automated deleveraging widened the gap between bids and asks.

4. ETF redemptions and outflows. November has seen notable outflows from some Bitcoin ETFs, adding to selling pressure while reducing a previously important source of buy-side stability.

Market context & technicals

• Volatility and liquidity: Order books thinned at lower levels, so even moderate sized sell orders caused outsized moves. Traders are watching the $80k area as an immediate support zone; a decisive break below that could open the way to the mid-$70k range, analysts say.

• Sentiment: On-chain demand signals are mixed — institutional accumulation continues in some pockets but retail sentiment has swung to fear as leveraged positions unwind. Media and market reports estimate over $1tn wiped from the broader crypto market in recent weeks.

What traders and investors are watching now

• Fed messaging and economic data: Any sign that the Fed will pause or cut in December could restore some upside momentum; conversely, stronger economic prints will likely keep rate-cut hopes subdued and pressure risk assets.

• Liquidation and funding trends: Traders will track perp funding rates, open interest on derivatives venues, and whether liquidations stabilize — signs those metrics stop spiking are often early signals the selloff is pausing.

• ETF flows and institutional demand: Net inflows/outflows from major ETFs remain a powerful gauge of longer-term appetite. Renewed inflows would help underpin prices; continued outflows would make recovery harder.

This week’s move is a stark reminder that Bitcoin despite deeper market structure and growing institutional participation remains sensitive to macro shocks and positioning risk. The dramatic down-move erased huge short-term gains and triggered a cascade of liquidations; whether this is a capitulation low or the start of a deeper correction depends largely on macro policy signals and whether buying appetite returns to ETFs and institutional desks. For now, traders should expect elevated volatility and prepare for rapid intraday swings.

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