After two days of recovery, cryptocurrencies have plunged once again. Starting last night, digital currencies weakened significantly. Bitcoin fell below $69,000 at one point, while Ethereum dropped nearly 6%, falling back under $2,000. Other major cryptocurrencies also experienced widespread declines. According to data from CoinGlass, over the past 24 hours, a total of 117,523 traders globally were liquidated, with total liquidations amounting to $332 million.

A new report from CryptoQuant suggests that Bitcoin traders who believed the top cryptocurrency had bottomed out in its cycle may be disappointed. The firm's weekly report emphasized the need for patience among traders, noting that bear market bottoms "take time to form," and indicated that Bitcoin's true bottom could be around $55,000.

According to real-time data from Investing.com, spot gold opened lower by 0.5% in morning trading, while silver fell sharply by 3.6%. Copper, platinum, and crude oil also saw declines. The liquidity indicator significance of cryptocurrencies remains valid.

Over the past 24 hours, the cryptocurrency market experienced another sell-off. Dogecoin fell nearly 8%, Ethereum dropped almost 6%, and Bitcoin declined from above $70,000 to below $69,000.

Data from Tradingnews indicates that the spot price of BTC-USD, which had risen from over $12,600 in October to a record high, has now fallen to between approximately $68,000 and $70,500—a decline of about 45% to 50% from its peak, with a drop of over 25% in the past month alone. The latest decline broke through the key psychological level of $70,000, entered the mid-$60,000 range, briefly touched the $60,000 zone, and then rebounded to around $70,000.

U.S.-listed spot Bitcoin exchange-traded funds (ETFs), after experiencing a two-day surge, saw $686 million flow out of the complex. One trading session alone recorded approximately $410.4 million in redemptions, an increase from the previous day's figure of about $276.3 million. Among these, the iShares Bitcoin Trust (IBIT) saw a single-day outflow of about $157.6 million, Fidelity's Wise Origin Bitcoin Fund (FBTC) lost approximately $104.1 million, and traditional products like the Grayscale Bitcoin Trust (GBTC) and other Bitcoin trusts collectively declined by another $92.6 million.

Over the past three months, IBIT has experienced net outflows of about $2.8 billion, confirming that even the largest sponsors are not immune, despite BTC-USD falling 25% in a month and nearly 50% from its peak. However, even with recent outflows, the majority of capital that flowed into IBIT remains invested. Investors are merely scaling back their positions rather than abandoning the product entirely. This retention rate is a key difference compared to the downturns in 2018 or 2022.

Looking at Ethereum ETFs, as of mid-February, there were net outflows of approximately $161 million over one week, marking the fourth consecutive week of negative flows. Just two trading sessions saw withdrawals of about $129 million and $113 million, respectively. The 30-day simple moving average of net flows has remained negative for about three months.

According to the new CryptoQuant report, bear market bottoms "take time to form," and the firm points to $55,000 as Bitcoin's true bottom. The report states that this price level has historically been a major support zone in bear markets. Based on the firm's data, the realized price—an indicator tracking the average price at which investors purchased a specific cryptocurrency—was reached during the last two bear market bottoms. The firm wrote, "Once the price reaches this level, it typically hovers around it for 4 to 6 months." The report also noted that its bull-bear market cycle indicator is only in the "bear market" phase and has not yet entered the "extreme bear market" range, which usually marks the start of the bottoming phase.

CryptoQuant's analysis echoes that of other firms over the past few weeks. The head of research at Galaxy pointed out that the asset lacks near-term catalysts and exhibits structural weakness, which could lead it toward the 200-week moving average around $58,000.

Furthermore, earlier this week, Standard Chartered updated its forecast, suggesting BTC could fall to $50,000 before rebounding to $100,000. Predictors on the prediction market Myriad, operated by Decrypt's parent company Dastan, hold a similar view: approximately 54% expect Bitcoin to fall to $55,000 before rising to $84,000.