Bitcoin fell below $95,000, losing nearly $900 million in funds. It’s close to erasing gains for the year, dropping 4.7% from a record high of $126,251. The crypto market saw $19 billion in liquidations, wiping out over $1 trillion in total market value of all cryptocurrencies.

Demand for downside protection in the options market surged. Liquidations in long positions are rising, and the fear and greed index signals “extreme fear”. Exchange-traded funds investing in Bitcoin saw $870 million in net outflows. The market remains under strain after a recent crash.

A brief rebound in US equities faded, adding pressure on riskier markets. Liquidity has decreased by 30%, and the market’s capacity to absorb large trades has fallen. Traders are positioning for volatility, with demand for neutral strategies increasing.

The value of Bitcoin accumulator Strategy Inc. shares slid, putting its enterprise value at risk. The company’s enterprise value was $74.8 billion, with outstanding debt and preferred equity. Strategy plans to disclose its latest Bitcoin purchases, expecting a rally in Bitcoin prices.

Strategy co-founder Michael Saylor remains optimistic, urging investors to “hodl” their Bitcoin. The company didn’t comment on the situation. The market is anxious, with uncertainty surrounding Bitcoin’s future. The crypto market’s sentiment remains depressed, with technical support lacking.

Read more at Yahoo Finance: Bitcoin Is on the Verge of Erasing Year’s Gain as Rout Deepens