Bitcoin has been hit hard over the weekend, dropping below the $99,000 threshold to its lowest price since late last month. Making matters worse, the dip landed right when tensions in the Middle East flared dangerously. This along with inflation fears coming back into play caused a massive selloff across the digital asset space. By late on Sunday, digital assets were starting to recover in earnest.
At this writing, Bitcoin is still hovering just below the $101K mark, looking down nearly 1% on the day. This price level represents the lowest point since May, as investors rushed to cope with geopolitical tensions and recession fears.
The market volatility led to substantial liquidations. At its height on Sunday, upwards of $1 billion in crypto positions were liquidated in a 24-hour span. More than 95% of these liquidations were from longs, a horrific reversal in market sentiment.
Even following the recent correction…Bitcoin ETFs had huge inflows at the beginning of the week. According to CoinGlass, over $1.04 billion flooded into spot Bitcoin ETFs. It was this flood from Monday to Wednesday of last week.
Sadly, all of these inflows reversed course late last week as institutional investors were spooked by the heightened volatility. This pause in investment activity coincided with anticipation surrounding U.S. President Donald Trump's response to Iran, further contributing to market unease.
