Bitcoin Falls Below $70,000 Amid Ongoing Sell-Off

• Over $2 billion in long and short cryptocurrency positions have been liquidated this week as of Thursday, contributing to downward price pressure
• Institutional demand has reversed materially, with U.S. bitcoin ETFs now net sellers in 2026 after purchasing 46,000 bitcoin at this time last year
• Bitcoin broke below its 365-day moving average for the first time since March 2022, declining 23% in the 83 days since the breakdown, with analysts suggesting potential downside toward the $70,000-$60,000 range

Bitcoin Falls Below $70,000 Amid Ongoing Sell-Off - Summary

Key Development:

Bitcoin briefly dropped below $70,000 on Thursday at approximately 6:27 a.m. ET, marking the first time the cryptocurrency traded below this level since November 2024. The price quickly recovered to around $70,453.68 by 6:40 a.m. ET, representing a 4.09% decline.

Critical Price Levels:

Market analysts identify $70,000 as a crucial support level, with a sustained break below potentially triggering further declines. CryptoQuant analysts project potential downside toward the $60,000-$70,000 range. Bitcoin has fallen approximately 40% from its all-time high above $126,000 reached in October, with the cryptocurrency breaking below its 365-day moving average for the first time since March 2022.

Market Context:

The sell-off occurred amid broader risk asset declines, with precious metals including silver and gold also under pressure. Over $2 billion in long and short cryptocurrency positions have been liquidated this week through Thursday, according to Coinglass data.

Institutional Activity:

A significant reversal in institutional demand is driving the decline. U.S. Bitcoin exchange-traded funds, which purchased 46,000 BTC at this time last year, have become net sellers in 2026. CryptoQuant reported that "institutional demand has reversed materially."

Market Sentiment:

According to Maja Vujinovic, CEO of digital assets at FG Nexus, Bitcoin is "trading on pure liquidity and capital flows" rather than hype, with the expected bull run failing to materialize. Other cryptocurrencies have experienced even steeper declines than Bitcoin during this period.