The crypto market is getting hit hard again, and this time the damage is spreading fast. Bitcoin is now trading around $70,000, a level not seen since late 2024, and the broader market has followed it straight down. Altcoins are bleeding, sentiment has collapsed, and traders are once again watching forced liquidations do what they always do in crypto: accelerate everything.
This isn’t a slow pullback. It’s a leverage-driven flush mixed with macro panic, and the result feels closer to a full meltdown than a normal correction.
What you'll learn 👉
1. Wall Street Panic Spilled Into Crypto
One of the biggest triggers behind this crash didn’t even start inside crypto.
A big selloff in Asian and U.S. tech stocks, driven by weak earnings from major firms like Alphabet and Qualcomm, flipped markets into full risk-off mode. Once equities started dumping, crypto moved with them.
Bitcoin and altcoins have increasingly traded like high-beta risk assets, meaning they react violently when traditional markets lose confidence. The correlation has been obvious over the last 24 hours: stocks drop, crypto drops harder.
This was not sparked by a crypto-specific scandal or protocol failure. It was macro fear spreading across every risk market at once.
The key thing to watch here is whether major indices like the Nasdaq can stabilize. If equities keep sliding, crypto will struggle to find footing.
2. Bitcoin Liquidations Turned the Drop Into a Cascade
The real fuel came from leverage.
Over the last day, more than $321 million in Bitcoin positions were liquidated, with longs making up roughly 87% of that total. That is the classic setup for a long squeeze.
Here’s how it works:
- Traders pile into leveraged longs expecting a bounce
- Price slips lower
- Stops trigger
- Liquidations force automatic selling
- The forced selling pushes price down even faster
- More longs get wiped out
It becomes a chain reaction.
This is why Bitcoin falling from $75K to $70K happened so quickly. The market wasn’t just selling. The market was being forced to sell.
That leverage flush is what turns a normal dip into a violent crash.
Read also: Why Ethereum Is Getting Wrecked Right Now – Don’t Touch It
3. Sovereign Bitcoin Selling Added Direct Pressure
At the same time, the market was hit with another heavy factor: large holder distribution.
On-chain data showed the Royal Government of Bhutan moved 184 BTC to trading firms and exchanges. Whether that was for strategic repositioning or outright selling, the market reads these flows the same way: supply is hitting the market during weakness.
When liquidation cascades are already active, even relatively small additional sell pressure can push prices over the edge.
Crypto is extremely sensitive during these moments because liquidity thins out fast.
4. The Market Is Sitting at a Critical Breakdown Level
Beyond Bitcoin, the total crypto market cap is now testing a major yearly support zone near $2.42 trillion.
This is a technical inflection point.
- If $2.42T holds, the market could enter a short-term consolidation
- If it breaks, the next downside target sits closer to $2.30T
That’s why this moment feels so unstable. The market is sitting on the edge, and any further Bitcoin weakness could trigger another leg down.
5. Extreme Fear Is Back
Sentiment has collapsed rapidly.
The Fear & Greed Index has dropped into extreme fear, and altcoin season indicators are near the bottom of the range. Traders are not rotating into risk. They are fleeing it.
This is what leverage flushes do. They don’t just wipe out positions. They wipe out confidence.
The market goes from “buy the dip” to “get me out” in a matter of hours.
Read also: XRP Is Bleeding Fast, Could Get Ugly If Price Crosses This Line
What Happens Next?
The next phase depends on two key things:
First, Bitcoin must defend this zone around $70K. If that level fails cleanly, liquidation pressure could return quickly.
Second, liquidation volume needs to slow down. These cascades burn themselves out eventually, but only after leverage is cleared.
A real recovery will require:
- ETF flows stabilizing
- Equity markets calming down
- Forced selling ending
- Bitcoin reclaiming broken support levels
Until then, the market remains fragile.
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