Bitcoin briefly drops below $70,000 as sell-off continues

On Thursday, Bitcoin experienced a significant drop, falling briefly below the $70,000 mark for the first time since November 2024. This decline, recorded around 6:27 a.m. ET, was part of a larger sell-off affecting risk assets across the market. Shortly after hitting this low, Bitcoin rebounded slightly, trading at approximately $70,453.68 by 6:40 a.m. ET, according to data from CoinMetrics. Market analysts have pointed out that the $70,000 threshold is a critical level to monitor. A sustained decline below this point could potentially lead to further downward pressure on Bitcoin's value. The cryptocurrency's drop followed a broader sell-off in U.S. tech stocks on Wednesday, which has had a ripple effect on the crypto market. In addition to Bitcoin, precious metals are experiencing volatility, with silver prices falling again and gold facing pressure. Liquidations have also been a significant factor in the market, which occurs when traders' positions are automatically sold as Bitcoin hits certain price points. Data from Coinglass revealed that over $2 billion in long and short positions in cryptocurrencies were liquidated this week alone. Bitcoin's value has been on a downward trajectory since reaching an all-time high of over $126,000 in October. Currently, it sits approximately 40% below that peak, with other cryptocurrencies like Ether and XRP witnessing even steeper declines. Maja Vujinovic, CEO of digital assets at FG Nexus, remarked that the anticipated bull run has not materialized, explaining that Bitcoin's current trading dynamics are driven more by liquidity and capital flows than by hype. While many in the cryptocurrency space have attributed Bitcoin's price support to large institutional investors, recent trends indicate that these same investors are now offloading their holdings. A report from CryptoQuant highlighted a significant reversal in institutional demand, noting that U.S. exchange-traded funds that had purchased 46,000 Bitcoin last year are now net sellers in 2026. Moreover, Bitcoin has fallen below its 365-day moving average for the first time since March 2022, experiencing a 23% decline in the 83 days following this breakdown—marking a worse performance than during the early 2022 bear market. Analysts from CryptoQuant suggest that further declines could lead Bitcoin into the $70,000 to $60,000 range, indicating continued uncertainty in the market.