Bitcoin holders realized more than $2 billion in losses over three days as exchange selling intensified and expectations of a US rate hike rose.
On Friday, Bitcoin briefly plunged below $75,000 as a sharp sell-off in US technology stocks spilled into digital assets.
This came as selling pressure now dominates spot trading on Binance and Coinbase, threatening to push Bitcoin toward $70,000 if a critical support level fails.
Bitcoin investors lock in heavy losses as buying pressure disappears
CryptoQuant analyst Darkfost reported that Bitcoin investors realized between $657 million and $703 million in losses daily over the past three days, bringing the combined amount to more than $2 billion.
Despite the scale of those losses, weekly net realized profit and loss stood at negative $191 million, reflecting gains realized by other holders during the period.
The losses accelerated after Bitcoin fell below $80,000 and are approaching levels last recorded during the market downturn in early August.
Meanwhile, Darkfost said the 30-day moving average of Bitcoin's spot net volume delta, which measures the difference between aggressive buying and selling, has turned negative on Binance and Coinbase.
At the end of August, the indicator stood at positive $64.8 million on Binance and $64.3 million on Coinbase, reflecting strong demand as Bitcoin rallied from $63,000 toward $85,000 in September.
By Nov. 5, those readings had reversed to negative $28 million and $9.4 million, respectively.
The deterioration began on Coinbase in October, while Binance initially stayed positive. Both exchanges are now recording more aggressive selling than buying, showing how the weakness has spread across major trading venues.
The reversal comes as Bitcoin struggles to recover from Thursday's market rout, which sent the S&P 500 down 4.36% and the Nasdaq Composite down 5.52%.
Concerns about artificial intelligence valuations and the prospect of tighter restrictions on data-center development following the Democratic sweep in the US midterm elections drove a sharp decline in technology stocks.
The rout erased much of Wednesday's post-election relief rally and exposed Bitcoin's vulnerability to broader risk aversion.
However, Bitcoin's problems extend beyond the equity-market downturn.
CryptoQuant head of research Julio Moreno has identified declining Bitcoin demand and contracting stablecoin liquidity as two major challenges facing the market.
Without stronger spot buying or renewed capital inflows, further selling could encounter insufficient demand to stabilize prices.
Bitcoin's fragile market position faces another test after the US economy added 165,000 jobs in October, more than double economists' expectations of 65,000.
The unemployment rate fell to 4.1% from 4.2% in September, while average hourly earnings increased 0.4%. Hiring figures for August and September were also revised higher by a combined 84,000 jobs, reinforcing evidence of a resilient labor market.
The stronger-than-expected report increased expectations of another Federal Reserve interest rate hike in December. According to Reuters, futures traders raised the probability of a quarter-point increase to approximately 80%, from 75% before the release.
US Treasury yields rose in response, with the benchmark 10-year yield reaching approximately 4.88% in early trading. Higher yields could further weaken demand for Bitcoin by making interest-bearing assets more attractive and reducing investors' appetite for risk.
However, much of the anticipated December tightening was already priced into financial markets before Friday's report.
Fabian Dori, chief investment officer at Swiss digital asset bank Sygnum, told CryptoSlate that investors should watch longer-term Treasury yields, which could determine whether financial conditions tighten further.
For Bitcoin, the immediate concern is that additional macroeconomic pressure could accelerate selling in a market already struggling with declining demand and contracting stablecoin liquidity.
Bitget analyst Lewis Huang identified $76,500 as a near-term support level, warning that a sustained break below it, particularly alongside rising Treasury yields and a stronger dollar, could deepen the correction.
CryptoQuant analyst Darkfost placed the more consequential threshold at $75,000. A failure to defend that level could send Bitcoin toward $70,000, where a significant concentration of investors previously acquired their holdings.
That concentration could provide support if buyers emerge around their cost basis, although continued selling could overwhelm demand at those levels.
The next indication of whether Bitcoin can stabilize will come from spot trading activity and stablecoin liquidity. Without a recovery in either, the market risks testing the $70,000 region even if the Federal Reserve's December decision delivers no further surprise.
