Bitcoin fell below the closely watched $70,000 support level on Thursday as a broad selloff across global markets pushed investors away from risk assets and into defensive positions.
Bitcoin dropped sharply during the session before stabilising near lower levels, its weakest performance in several months.
Market participants said the breach of the $70,000 threshold was significant, as the level had served as a key technical support during recent trading.
The move triggered additional selling from leveraged positions and short-term traders, amplifying downward pressure across the crypto market.
The selloff in digital assets mirrored losses in traditional markets. U.S. equities retreated for a second consecutive session, led by declines in technology stocks, while precious metals also came under pressure amid heavy liquidation.
The strength of the U.S. dollar further weighed on cryptocurrencies, which tend to underperform during periods of dollar appreciation.
Bitcoin’s decline was accompanied by weakness across the broader crypto complex. Ethereum traded lower earlier in the session before trimming losses, while smaller tokens posted steeper declines as liquidity thinned. Market data showed increased volatility and rising liquidation volumes, highlighting fragile investor sentiment.
Analysts attributed the downturn to a combination of macroeconomic uncertainty and profit-taking after Bitcoin’s strong run in recent months.
Expectations that major central banks will keep interest rates higher for longer have reduced appetite for speculative assets, particularly those sensitive to liquidity conditions.
Despite the pullback, some market participants cautioned against drawing long-term conclusions from short-term price action, noting that institutional interest in digital assets remains elevated.
However, they added that near-term direction will likely depend on broader market stability and signals from central banks on monetary policy.
For now, the break below $70,000 underscores the vulnerability of cryptocurrencies during periods of global market stress, as investors prioritise capital preservation over risk-taking amid rising uncertainty.
