Bitcoin (COIN:BTCUSD) declined sharply on Thursday, sliding below the $71,000 level as fragile market liquidity and heavy losses in global technology shares weighed on high-risk assets.
The world’s largest cryptocurrency was down 7.6% to $70,427.1 at 00:28 ET (05:28 GMT), its lowest level since early November 2024. Earlier in the session, bitcoin fell to an intraday low of $70,129.6.
The digital asset has now fallen in seven of the last eight trading sessions and has retreated more than 40% from its all-time high near $126,000 reached in October.
Liquidity squeeze and tech sector weakness drive selling
Market activity suggested that reduced trading liquidity amplified volatility, accelerating forced liquidations as bitcoin broke through key technical support levels.
The latest downturn followed a broad sell-off in global technology stocks overnight, triggered by investor concerns about the rising costs and pace of artificial intelligence investment among major tech companies.
Losses in U.S. technology stocks spread into Asian markets and extended into cryptocurrency markets, which have increasingly shown strong correlation with growth-oriented equities during periods of market turbulence.
Selling intensified as leveraged traders unwound positions, particularly in derivatives markets. Bitcoin’s fall below the $75,000 threshold triggered widespread stop-loss activity, further accelerating declines.
According to crypto analytics firm CoinGlass, roughly $770 million in cryptocurrency positions were liquidated over the past 24 hours.
Macroeconomic conditions also contributed to the sell-off. A stronger U.S. dollar and rising global bond yields reduced demand for speculative assets.
Even traditional safe-haven commodities faced pressure, highlighting fragile liquidity conditions across financial markets. Silver prices plunged during Asian trading, erasing recent gains, while gold also moved lower.
Investor sentiment toward digital assets has weakened following weeks of volatile trading and multiple unsuccessful attempts to sustain upward price momentum.
Altcoins decline alongside bitcoin
Most alternative cryptocurrencies also recorded notable losses during Thursday’s downturn.
Ethereum, the second-largest cryptocurrency by market capitalisation, dropped 7.4% to $2,098.92. XRP, ranked third globally, fell 10% to $1.42.
Solana declined 6%, Cardano fell 5%, and Polygon lost 3.2%.
Among meme-based cryptocurrencies, Dogecoin dropped 6%, while the $TRUMP token declined 3.5%.
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