Bitcoin slid to $88,000 on Wednesday, losing 4.8% of its value within 24 hours, as global crypto markets endured a heavy wave of sell pressure driven by heightened investor fear and macroeconomic uncertainty.
With no major catalysts to spark a rebound, BTC trading volume rose to $73.7bn, while sentiment deteriorated further amid uncertainty over Federal Reserve policy direction.
A combination of ETF outflows, leveraged position unwinding, and broader market caution accelerated the decline. Investors reacted to conflicting signals from US policymakers, with Federal Reserve Governor Christopher Waller suggesting potential support for a 25bps rate cut in December, while other FOMC members maintained more conservative stances.
The broader crypto market also turned sharply negative. Total digital asset market capitalisation fell 5.12% to $3.03tn.
During the downturn, liquidation volumes surged above $1bn across the crypto ecosystem. A major BTC liquidation worth $96.51m occurred on HyperLiquid, though the total BTC-only liquidation figure for the day is yet to be fully confirmed.
Fear dominated investor behaviour, with retail and institutional participants avoiding bargain opportunities due to uncertain market direction. However, some crypto whales re-entered the market at lower levels, betting on a possible rebound.
Bitcoin’s overall market valuation stood at $1.77tn, with the token losing more than 12% over the past week.
Ethereum also suffered significant losses, trading at $2,887, down 9% in 24 hours, with a market cap of $347bn and trading volume of $35.68bn.
U.S. Bitcoin ETFs recorded $373m in outflows, with BlackRock’s iShares Bitcoin Trust experiencing its largest single-day redemption since its January 2024 debut. Ethereum ETFs saw $74m in outflows, while Solana-based ETFs attracted $30m in fresh inflows.
