Over $935 million was wiped out across the cryptocurrency market on Thursday as Bitcoin dropped to a six-week low of $72,620, triggering the largest wave of leveraged position liquidations in weeks. The sell-off, which accelerated during early Asian trading hours, pushed Bitcoin below the $75,000 support level and has traders watching $70,000 as the next critical line of defense.
Bitcoin hits six-week low below $73,000
The BTC/USD pair fell as low as $72,620 on Thursday, erasing all gains made since mid-April. The decline came as reports emerged of renewed US military strikes on Iran, adding geopolitical uncertainty to an already fragile market. The broader crypto market lost more than $80 billion in total value over the past 24 hours, with major altcoins following Bitcoin lower.
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Data from CoinGlass shows that long positions bore the brunt of the liquidation event. More than $874 million in long positions were closed, with Bitcoin accounting for $348.5 million of that total. Ether followed with $228.5 million in long liquidations. The single largest liquidation occurred on Hyperliquid, where a $15.34 million BTC-USD long position was wiped out.
ETF outflows and declining open interest signal bearish sentiment
US-based spot Bitcoin exchange-traded funds have recorded outflows for eight consecutive days, totaling $2.6 billion. Wednesday alone saw $733 million in net outflows, the largest single-day withdrawal since January 29. Global Bitcoin investment products also posted $1.3 billion in outflows last week, according to data from SoSoValue.
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Bitcoin futures open interest has declined across all exchanges, with the Chicago Mercantile Exchange and BingX seeing drops of 9.8% and 9% respectively over the last 24 hours. Declining open interest suggests reduced use and market participation, often a bearish signal. A similar 30% decrease in open interest between January 14 and February 6 was accompanied by a 38% drop in Bitcoin’s price.
$70,000 now the critical support level
Analysts say Bitcoin must hold above $70,000 to avoid a deeper correction. The asset has lost the key $75,000 support zone, and traders are now watching the 100-day simple moving average at $73,000 and the demand zone above $70,000. A daily candlestick close below $70,000 could trigger another sell-off toward $65,000, representing an 11.4% drop from current levels.
“Renewed US-Iran fighting overnight sent us lower with mass liquidations,” analyst Nicrypto said in a Thursday post on X. “We have fallen well below the previous $75K support zone and are now at the critical $73K support.”
MN Capital founder Michael van de Poppe described the sell-off as a “standard approach” typical of month-end rebalancing by asset managers. He noted that unless Bitcoin drops below the $71,400 to $73,400 support area, it does not signal a new low. “This is my last stance of an important support zone; otherwise, I’d expect lower $60Ks to be tested for support,” he said.
Conclusion
The convergence of geopolitical tensions, sustained ETF outflows, and declining open interest has created a challenging environment for Bitcoin bulls. The $70,000 level now represents the last major support before a potential move toward $65,000. While some analysts view the sell-off as routine month-end rebalancing, the scale of liquidations and institutional withdrawal suggests caution is warranted. This article is for informational purposes only and does not constitute investment advice.
FAQs
Q1: Why did Bitcoin’s price drop so sharply?
The drop was driven by a combination of renewed US military strikes on Iran, sustained outflows from Bitcoin ETFs, and a broader market correction that triggered mass liquidations of leveraged positions.
Q2: What happens if Bitcoin falls below $70,000?
A daily close below $70,000 could trigger another sell-off toward $65,000, based on an inverted V-shaped pattern on the daily chart. Analysts view $70,000 as the last major support before a deeper correction.
Q3: How much was liquidated in this event?
Over $935 million in total positions were liquidated across the crypto market, with more than $874 million in long positions alone. Bitcoin accounted for $348.5 million of the total long liquidations.
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