Bitcoin Falls to $75,000 Amid Market Turmoil: Correction or Collapse?

Bitcoin just got smacked down to $75,000. Traditional markets are spiraling, and investors are dumping risk like there’s no tomorrow.

Last week, BTC appeared resilient, holding steady even as the S&P 500 plunged by 5%. Some began speculating about Bitcoin decoupling from traditional indicators. But today’s 4% fall in futures brought clarity—crypto wasn’t immune after all.

Over $1.3B got wiped off the board in crypto—$1.15B just from longs.

Bitcoin traders alone saw $389M liquidated. Ethereum? $321M gone.

And get this—Bybit exchange took the biggest hit with $520M in liquidations. That’s nearly double what Binance saw at $260M.

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• Fear is back—Crypto’s Fear and Greed Index hit 17. Last time it was this bad? March, when Bitcoin cracked below $80K.

• BTC dominance is up to 62.5%. Meanwhile, Ethereum and the altcoins are fading—ETH now holds less than 8% of the market.

Is the S&P 500 Heading Even Lower?

After shedding more than 17% from its 2025 high of 6,147, the S&P 500’s slide might just be gaining momentum. With investors rattled by economic uncertainty and whispers of a recession growing louder, the pain may not be over yet.

Eyes are now on the 4,800 level—a critical zone where the 2022 peak of 4,818 and diagonal trend support converge. At present, the index hovers near 5,074 points.

Bitcoin ETF Outflows Remain Tame—for Now

On April 4, 2025, net outflows from U.S. spot Bitcoin ETFs totaled $64.9 million, according to CoinGlass—relatively restrained, despite heavy losses across equity markets.

Still, with Bitcoin sliding more than 7% on Sunday, further outflows can’t be ruled out. Spot ETFs have become favored tools for institutional traders seeking short-term opportunities—and they’re quick to de-risk when the tide turns.

Inflation Cooling Faster Than Expected?

The alternative inflation gauge from Truflation—based on open data—puts U.S. inflation at just 1.46%, with recent lows touching 1.22%, the lowest level since 2020.

Anthony Pompliano, head of Professional Capital Management, argues the Fed should seize this moment to slash interest rates and unlock credit markets.

Official numbers, meanwhile, still lag behind: March CPI stood at 2.8%, per the Bureau of Labor Statistics. All eyes now turn to April 10, when fresh data drops. If this cooling trend holds, the pressure on the Fed to pivot will be hard to ignore.

Jeff Park, Head of Alpha Strategies at Bitwise Invest, suggests that liquidity constraints—not inflation—could ultimately push the Federal Reserve to ease rates and stop tightening its balance sheet. This would mirror patterns seen during the financial squeezes of 2008 and 2019, when banks faced serious difficulties in accessing short-term capital.

A rate cut could fuel the next BTC breakout. But right now? Bitcoin’s still trapped in macro fear.

If Bitcoin can maintain support at $75,000, a steady move back toward $80,000 could unfold. A breakdown below that threshold, however, may trigger a pullback to $70,000.

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