Bitcoin Slides as Market Sell Off Intensifies and Pressure Builds
Bitcoin slid below the mid-$67,000 area Thursday as a broad sell-off intensified and volatility spread across digital assets.
Traders pointed to growing liquidations and fast deleveraging as key drivers of the move. Risk sentiment worsened after declines in U.S. equities, so many investors reassessed exposure rather than buying dips on narrative alone.
Analysts framed the decline as a loss of confidence, not just a routine pullback. The piece will outline technical damage, liquidation-driven flows, and how macro uncertainty and geopolitical noise amplified selling pressure.
Other tokens and crypto-linked stocks fell in tandem, underscoring correlation risk during stress. Readers should watch key levels, liquidity conditions, and whether ETF flows and moving averages stabilize over time.
Key Takeaways
- Slide under mid-$67k was driven by liquidations and rapid deleveraging.
- Investor sentiment shifted as the asset traded more like a risk position.
- Technical damage and flow data will help explain near-term moves.
- Spillover hit other tokens and crypto-linked equities, raising correlation risk.
- Watch liquidity, ETF flows, and key support levels for signs of stabilization.
Bitcoin tumbles below $67,000 as selling accelerates and key levels break
Selling pressure widened Thursday as the flagship crypto fell through a key round number, accelerating intraday losses.
The asset slipped into the mid-$67,000s, around $67,675 to $67,245 reported, marking its lowest level since November 2024. Weekly losses stacked up, with the move amounting to roughly a 20% decline for the week.
Traders said the break of $70,000 mattered in trading terms. Round-number psychology, clustered stops and visible order books can turn a single breach into cascading momentum.
Lowest level since November 2024 as weekly losses stack up
The longer arc is notable: the rally from October’s peak near $126,210 has given way to a slide lasting multiple months. That shift can change behavior from buying dips to trimming after rallies.
$70,000 as a psychological line and what a breakdown can trigger
Once $70,000 failed, participants flagged the $60,000–$65,000 zone as a plausible next area of support. CoinShares’ James Butterfill warned that a move toward that range was “quite likely.”
| Metric | Level / Value | Notes |
|---|---|---|
| Recent range | Mid-$67,000s | Lowest level since november 2024 |
| Weekly change | -20% | Rapid drawdown over the week |
| Peak to now | -46% from Oct. 6 | Months of weakening price action |
Bitcoin price drop market sell off deepens amid liquidations and crypto deleveraging
Rapid collateral calls and automated position liquidations amplified selling and drained liquidity.
Forced liquidations build downside momentum as positions are unwound
Forced liquidations occur when exchanges close leveraged positions after collateral falls below thresholds. These automatic closures can create sharp gaps in order books and remove available bids, producing short-term air pockets in the trading flow.
Coinglass data shows more than $2 billion liquidated across crypto this week
Coinglass reported over $2 billion in long and short cryptocurrency positions liquidated this week. That scale of deleveraging can turn a modest pullback into a disorderly decline as stop-losses cascade and volatility spikes.
Institutional flows shift as U.S. bitcoin ETFs turn into net sellers
CryptoQuant flagged a material reversal in institutional demand. U.S. ETFs that were net buyers last year became net sellers in 2026, removing an important marginal bid and compressing liquidity for other assets.
CryptoQuant signals: break below the 365-day moving average and downside risk bands
CryptoQuant noted a break below the 365-day index moving average, a signal that often triggers systematic selling. Analysts warn this can widen spreads, lower investors' interest, and raise short-term downside toward the $70,000–$60,000 range.
Liquidity and capital flows replace hype as the dominant driver
"Trading on pure liquidity and capital flows," said FG Nexus CEO Maja Vujinovic.
Her point underscores how available capital, not narrative, is setting near-term direction. During deleveraging, valuation debates compress and both spot and derivatives trading face added pressure.
Risk-off mood hits crypto as macro uncertainty rattles markets
Sentiment swung sharply toward safety as indexes fell and labor data suggested slower growth ahead. The broad move reduced tolerance for volatility and shrank appetite for speculative exposure.
Tech-led equity weakness and broader index declines weigh
Major U.S. stocks slid about 1% as technology shares fell for a third straight session. This tech-led weakness reinforced correlation across digital assets and traditional risk trades.
Economic signals in focus: jobs and layoffs
Weekly jobless claims came in at 231,000 versus 212,000 expected. At the same time, employers announced more than 108,000 layoffs in January — the highest for that month since 2009.
Rates, the dollar, and shifting risk appetite
The dollar index rose roughly 0.3% to 97.86 while the 10-year Treasury yield eased to about 4.21%. A stronger dollar and changing interest expectations can tighten liquidity and curb demand for risky assets.
Gold and silver volatility complicates the “digital gold” narrative
Precious metals swung sharply: silver sank and gold came under pressure by the ounce. That volatility makes it harder for the digital gold argument to hold in real time, as gold's year-to-date strength contrasts with the recent drawdown in crypto.
| Indicator | Recent move | Implication for traders |
|---|---|---|
| Dow / S&P / Nasdaq | ~-1% | Risk-off tone; higher correlation |
| Weekly jobless claims | 231,000 (vs 212,000) | Elevated fear about growth |
| Layoffs (Jan) | 108,000+ | De-risking by institutions |
| Dollar index / 10yr yield | +0.3% to 97.86 / ~4.21% | Tighter conditions; lower liquidity |
| Gold / silver (per ounce) | Volatile swings | Complicates safe-haven comparisons |
"Traders watched macro prints and liquidity signals for the next clear cue," market participants said.
What to watch next: job data, CPI reads, dollar and yield moves. These will shape risk appetite and influence how traders reweight positions over time.
Broader crypto and crypto-linked stocks slide as investors reassess exposure
Losses broadened across tokens and equities as investors rushed to cut exposure to speculative assets. The move extended beyond the main benchmark and hit large altcoins and firms with direct token exposure.
Correlated weakness among major tokens
Ether fell roughly 23% on the week, on pace for its worst week since November 2022. Solana traded near $88.42, down about 24% and near a two-year low. XRP also slid alongside broader cryptocurrencies, underscoring rising correlation risk.
Crypto-facing companies see stock declines
Listed firms tracked the pullback. Coinbase fell about 9%, Robinhood dropped roughly 8%, and miner Riot Platforms slid near 10% as trading volumes and confidence faded.
Strategy’s earnings and balance-sheet spotlight
MicroStrategy (Strategy) fell about 12–13% ahead of earnings. The company reported holdings of 713,502 bitcoin with an average cost above $76,000, leaving the position underwater while the asset traded in the mid-$67,000 area.
Politically linked trades unwind
Post-election optimism also cooled. American Bitcoin, tied to Eric Trump and Donald Trump Jr., was down more than 80% from early-October levels. World Liberty Financial’s market value slid to roughly $3.25B from over $6B. The $TRUMP meme coin tumbled from about $45 to near $3.93.
Why this matters for portfolios: When correlation rises within crypto, diversification benefits shrink. That can raise overall drawdown potential and push investors toward lower exposure or hedges.
| Asset / Company | Move (approx.) | Context |
|---|---|---|
| Ether | -23% (week) | Worst weekly run since Nov. 2022 |
| Solana | -24% to $88.42 | Two-year low; high correlation |
| Coinbase | -9% | Lower trading volumes expected |
| MicroStrategy (Strategy) | -12–13% | 713,502 holdings; avg cost >$76,000 |
"Correlation across tokens and listed companies rose, prompting broad reassessment," analysts said.
- Broad token moves reduced intra-crypto diversification.
- Stocks tied to cryptocurrencies repriced for lower volumes and higher operating leverage risk.
- Political and narrative-driven trades unwound as speculative demand waned.
Conclusion
This session’s momentum followed visible stops and thinner liquidity, which amplified moves after a widely watched level failed.
The week combined forced liquidations, fast deleveraging and softer ETF demand, layered over a broader U.S. risk-off backdrop. Analysts noted that these flows, not narrative alone, drove much of the short-term action.
Gold showed relative resilience, testing the digital assets thesis as confidence waned during the year’s sharp drawdown.
For investors, the key signals are whether forced selling eases, whether institutional flows stabilize, and whether price can reclaim broken support over time.
Volatility creates trading chances but raises execution risk and slippage. Watch macro headlines, equity tone, liquidity conditions and the market’s reaction to new stress events as fear ebbs or intensifies.