Bitcoin extended its sharp selloff on Thursday, sliding nearly 8% and breaking below the $70,000 level as thin liquidity and a broad rout in global technology stocks intensified pressure on risk-sensitive assets.
The world’s largest cryptocurrency was last down 7.3% at $68,754 by 10:06 ET (15:06 GMT), marking its weakest levels since early November 2024. Bitcoin has now fallen in seven of the past eight trading sessions, shedding more than 44% from its record high near $126,000 reached in October.
Bitcoin hit by weak liquidity and tech stock selloff
Market data showed liquidity was notably thin, magnifying price swings and triggering a wave of forced liquidations after bitcoin slipped below closely watched technical levels. The decline followed a sharp selloff in global technology stocks overnight, as investor concerns grew over the pace of artificial intelligence adoption and rising capital spending by major firms.
Losses in U.S. tech shares spilled into Asian markets and then into cryptocurrencies, which have increasingly traded in lockstep with high-growth equities during periods of market stress. Selling pressure intensified as leveraged positions were unwound, particularly in derivatives markets, after bitcoin’s fall below $75,000 activated stop-loss orders.
According to data from CoinGlass, nearly $770 million worth of cryptocurrency positions were liquidated over the past 24 hours.
Marion Laboure, an analyst at Deutsche Bank, said the broader bitcoin decline reflects a mix of hawkish signals from the Federal Reserve, institutional outflows combined with thinning liquidity, and stalled regulatory momentum. She added that the recent price action marks the end of the so-called “tinkerbell effect,” as bitcoin transitions from a purely speculative asset toward a more institutional role—while remaining too volatile to replace gold or traditional currencies.
Looking ahead, Laboure said bitcoin is likely to mature further as regulation improves and market infrastructure develops. However, she noted that while the asset is unlikely to disappear, it is also unlikely to fully replace established financial instruments.
Macro pressures weigh across markets
Broader macroeconomic factors also weighed on sentiment, with a firmer U.S. dollar and slightly higher global bond yields dampening appetite for speculative assets. Even traditional safe havens struggled, highlighting strained liquidity across asset classes.
Silver prices plunged nearly 17% in Asian trading, erasing recent gains, while gold also weakened amid the broader market stress.
Crypto market sentiment has deteriorated after weeks of volatile trading and repeated failures to reclaim higher price levels.
Altcoins slide alongside bitcoin
Losses were widespread across the digital asset market. Ethereum fell 5.5% to $2,033.50, while XRP tumbled 13% to $1.34. Solana, Cardano and Polygon declined between 4.5% and 7%.
Among meme tokens, Dogecoin dropped nearly 7%, while the $TRUMP token fell more than 4%.
