Digital currencies have resumed their decline after a two-day rebound. Starting last night, the cryptocurrency market weakened once more. Bitcoin briefly fell below $69,000, while Ethereum dropped nearly 6%, falling back under the $2,000 mark. Other major cryptocurrencies also experienced widespread declines.

According to data from CoinGlass, over the past 24 hours, 117,523 traders globally were liquidated, with total liquidations amounting to $332 million.

A new report from CryptoQuant suggests that Bitcoin traders expecting the leading crypto asset to have bottomed out in its cycle may be disappointed. The firm's weekly report emphasized the need for patience among traders, stating that bear market bottoms "take time to form," and identified $55,000 as Bitcoin's true bottom price.

Based on real-time data from Investing.com, spot gold fell 0.5% at the morning open, while silver plummeted 3.6%. Copper, platinum, and crude oil also saw significant declines. The liquidity indicator significance of cryptocurrencies remains valid.

Over the past 24 hours, the digital currency market experienced another collective drop. 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 BTC/USD price, which had risen from a record high above $126,000 in October, is now trading between approximately $68,000 and $70,500. This represents a decline of about 45-50% from its peak, with a drop of over 25% in the past month alone. The latest decline broke through the psychological $70,000 barrier, entered the mid-$60,000 range, briefly touched the $60,000 zone, before rebounding to around $70,000.

U.S.-listed spot Bitcoin exchange-traded funds, having just experienced 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. Specifically, IBIT saw single-day outflows of approximately $157.6 million, Fidelity's FBTC lost about $104.1 million, and traditional products like GBTC and other BTC trusts collectively declined by another $92.6 million.

Over the past three months, IBIT has experienced net redemptions of around $2.8 billion, confirming that even the largest sponsors are not immune, even as BTC/USD fell 25% in a month and nearly 50% from peak levels. However, despite recent outflows, the majority of capital that flowed into IBIT remains active. Investors are merely scaling back their investments rather than abandoning the product entirely. This retention rate is a key differentiator from 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 days saw withdrawals of about $129 million and $113 million respectively. The 30-day simple moving average of net flows has remained negative for approximately three months.

Has the Bottom Been Reached? According to the new CryptoQuant report, bear market bottoms "take time to form," while also pointing to $55,000 as Bitcoin's genuine bottom. The report states that this price level has historically been a major price support zone in bear markets. Based on the firm's data, the realized price—an indicator tracking the average price investors paid for a specific cryptocurrency—was reached during the bottoms of the last two bear markets. The company 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" phase and has not yet entered the "Extreme Bear" range, which usually marks the beginning of the bottoming phase.

CryptoQuant's analysis echoes that of other firms over recent weeks. Galaxy's head of research pointed to the asset's lack of near-term catalysts and structural weakness as reasons it might head towards its 200-week moving average around $58,000. Furthermore, earlier this week, Standard Chartered updated its forecast, suggesting BTC could fall to $50,000 before subsequently rebounding to $100,000. Predictors on the Myriad prediction market, operated by Decrypt's parent company Dastan, hold a similar view: expecting Bitcoin to fall to $55,000 before rising to $84,000, with approximately 54% probability.