Bitcoin fell below the closely watched $70,000 threshold, sparking a broad sell-off in digital assets that has wiped out more than $1 billion in trading positions.
According to Crypto Slates data, the world’s largest cryptocurrency fell to a low not seen since the November 2024 election, leaving the broader market in the red.
Ethereum fell 7% to around $2065, while XRP, a recent outperformer, fell more than 14% to $1.35.
Other major tokens, including Cardano, BNB, Solana and Dogecoin, posted similar losses, succumbing to a wave of selling pressure that has firmly gripped the asset class.
The slump marks the sector’s weakest performance since the start of Donald Trump’s second administration, reflecting a rapid shift in sentiment from post-election euphoria to risky capitulation.
Unlike previous declines due to discrete shocks, traders say the move reflects a dire erosion of confidence as capital focuses more on stocks and commodities, making digital assets increasingly vulnerable to negative headlines.
Samson Mow, founder of Bitcoin-focused company Jan3, said the sell-off felt especially painful because of its asymmetry.
In comments on social media, Mow argued that Bitcoin has struggled to benefit from risk-on stories but is still exposed to broader risk-off moves. When fear around artificial intelligence valuations rises, he says, crypto sells, and when metals retreat, crypto falls alongside them.
Bitcoin price fluctuations lead to a liquidation cascade
Data from the chain suggests the decline has been accompanied by a sharp increase in foreclosures.
Glass junction reported that Bitcoin’s capitulation measure recorded the second largest spike in the past two years, indicating a rapid escalation in liquidations and unwinding of positions. Such stress events typically coincide with accelerated derisking and increased volatility as traders reset their exposure.
Indeed, the price drop caused a wave of liquidations in the derivatives markets.
Data from Coinglass indicates that more than $120 million in positions were liquidated in one hour as prices fell through key technical levels.
Long positions were responsible for most of the damage, with about $116 million liquidated, while short positions lost about $6 million.
Bitcoin-linked contracts bore the brunt of the losses, with liquidations totaling more than $86 million. Ethereum traders closed about $16 million worth of positions, while bets tied to Solana and the HYPE token were liquidated for about $3 million and $6 million, respectively.
Over a 24-hour period, total liquidations reached approximately $1.06 billion, underscoring the extent of leverage in the market.
Long positions accounted for nearly $900 million of that total, highlighting how quickly bullish positioning can disappear when prices fall sharply.