Bitcoin Crashes Below $70,000 — “Forced Selling” Begins in the Market
On Thursday, Bitcoin fell below the psychological level of $70,000. The cryptocurrency market was hit by a wave of negativity driven by weak demand, volatility in technology stocks, and mass position closures by traders, Bloomberg reports.
At the time of writing, Bitcoin is trading around $69,500, after dropping as low as $69,049 during the day — its lowest level since November 2024. Since its October peak, the leading cryptocurrency has already lost about 45% of its value.
According to Glassnode, the market is in a phase of “forced deleveraging”: investors are being compelled to realize losses amid a lack of new buyers.
Over the past 24 hours, more than $1 billion in positions were liquidated on the futures market, with $906 million coming from bullish positions. Funding rates on perpetual futures turned negative, signaling extreme pessimism among traders.
The crash has affected the entire ecosystem. The small-cap token index has fallen by 70% over the past year. Shares of crypto exchanges such as Coinbase and Gemini have lost up to 60% of their value over the last three months due to declining trading volumes.
The options market is positioning for further downside. Traders are actively buying downside protection, while open interest in medium-term contracts is concentrated around the $60,000 level and even as low as $20,000.
See also: "XRP Cryptocurrency Slides 10% in Bearish Trading With a Pullback"
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