Bitcoin fell below $70,000 on Tuesday for the first time since April as sentiment across the crypto market weakened sharply. The world’s largest cryptocurrency was last down more than 6% at $67,014.97, after touching an intraday low of $66,954.99, its weakest level since April 5, according to Coin Metrics.
The selloff hit the broader crypto sector as well. Ether dropped 4.7%, while major crypto-linked equities moved lower. Strategy fell 9%, Galaxy slid 5.9%, and Coinbase declined 4.7%.
The decline accelerated after Monday’s move lower, when bitcoin and crypto stocks sold off following Strategy’s disclosure that it had sold a small amount of bitcoin from its holdings, marking the company’s first such sale since 2022. Although the move had been signaled in advance, it challenged the company’s long-standing “never sell your bitcoin” stance associated with chairman and founder Michael Saylor, unsettling investors.
That pressure triggered a wave of long liquidations in the crypto market. As leveraged traders betting on rising prices were forced out of positions, exchanges automatically sold holdings to cover losses, adding to the downside momentum. Over the past 24 hours, crypto exchanges recorded $594 million in long liquidations, according to CoinGlass.
Bitcoin has struggled to recover from its October record above $126,000, with recent macro uncertainty adding to the pressure. Market concern surrounding the U.S.-Iran war has weighed on bitcoin even as stocks have continued setting new highs, putting pressure on two of the cryptocurrency’s most common narratives: that it functions as “digital gold” during geopolitical stress, and that it behaves like a high-beta technology asset.
The latest weakness has also affected bitcoin exchange-traded funds. On Monday, bitcoin ETFs posted their 11th consecutive day of net outflows, the longest streak on record, according to SoSoValue. The persistent outflows suggest investors have been pulling back from the asset as volatility rises and confidence weakens across the broader crypto market.
