Bitcoin Falls Below $70,000 Amid Broader Market Sell-Off

Bitcoin briefly fell below $70,000 for the first time since November 2024, triggering concerns of further downward pressure.
- Over $1.45 billion in cryptocurrency positions were liquidated in the past 24 hours, with Bitcoin accounting for more than 50% of total liquidations.
- Institutional investors have reversed their bullish stance, and ETF outflows are exacerbating the sell-off, with Bitcoin ETFs seeing significant net outflows.

Bitcoin dropped below $70,000 for the first time since November 2024, marking a key threshold for market observers. This move occurred amid a broader selloff in tech stocks and other risk assets, compounding pressure on the cryptocurrency. The decline has led to increased volatility and growing instability in the market, with traders struggling to maintain positions.

According to Coinglass data, over $2 billion in positions were liquidated across the crypto market this week. Bitcoin alone accounted for $738.83 million in liquidations, more than double that of Ethereum, the second-highest. The rapid and large-scale liquidations suggest a significant bearish trend and a loss of support levels for key cryptocurrencies.

Institutional investors have shifted from net buyers to net sellers, with U.S. ETFs transitioning from positive inflows to outflows. This has exacerbated the market's fragility, especially with Bitcoin ETFs seeing average daily outflows of $243 million over the past 12 days. Analysts note that the broader liquidity dynamics are now driving the market, rather than speculative hype.

What triggered the selloff in Bitcoin and other cryptocurrencies?

The selloff in Bitcoin began as part of a broader decline in risk assets, with U.S. tech stocks and precious metals also experiencing significant losses. Bitcoin has dropped by roughly 50% from its October 2025 high of $126,080, reaching a 15-month low of $60,255. This has led to heightened volatility and a growing sense of bearish sentiment in the market.

The move below $70,000 was not an isolated event but part of a three-phase cascade involving demand fatigue, macroeconomic shifts, and mechanical unwinds. The selloff has been amplified by the introduction of U.S. spot ETFs, which have altered the dynamics of capital flows and made outflows a new vulnerability for the asset class.

How are institutional investors responding to the market decline?

Institutional investors, who were previously bullish on Bitcoin, have now become net sellers, reversing a major shift in demand. This transition from buyers to sellers has contributed to the ongoing selloff. ETF outflows have been particularly significant, with Bitcoin ETFs seeing $2.9 billion in outflows over 12 days, averaging $243 million per day.

The selloff has also prompted a capital rotation from Bitcoin ETFs to XRP ETFs, as institutional investors seek assets with clearer regulatory pathways. XRP ETFs have attracted $16.79 million in inflows, suggesting a shift in investor priorities amid regulatory uncertainty for Bitcoin and Ethereum ETFs.

What is the risk outlook for Bitcoin in the near future?

Analysts remain cautious about Bitcoin's near-term prospects, noting that the market could see further declines if prices fail to recover. The break below $70,000 has led to increased concerns that the selloff could continue, with Bitcoin potentially facing downside toward the $60K–$70K range.

Bitcoin has also broken below its 365-day moving average for the first time since March 2022, a technical indicator that typically signals potential further downside. If the asset fails to stabilize, it could trigger additional forced liquidations and exacerbate the bearish trend. Institutional investors and traders are now closely watching for signs of a potential counter-trend rally in the coming weeks.