Bitcoin Crashes Below $70,000 as On-Chain Data Signals Bear Market
Cryptocurrency hits $69,101 on Bitstamp as leverage unwinds and investors reassess inflation hedge thesis
The latest selloff reflects a broader unwind of leveraged positions across cryptocurrency markets, with investors reassessing Bitcoin short-term viability as an inflation hedge amid persistent macroeconomic pressures.
On-chain analytics firms report fading demand and tighter liquidity conditions, while prediction markets show little expectation of near-term interest rate cuts from the Federal Reserve. The combination has created a challenging environment for risk assets.
The crash follows a volatile period for digital assets, with Bitcoin posting its fourth consecutive monthly loss in January. Trading volumes have surged as both retail and institutional investors adjust their positions.
Analysis
Why This Matters
Bitcoin dip below $70,000 is psychologically significant, breaking a key support level that had held during recent turbulence. For investors who entered during the post-election rally, this represents substantial paper losses.
Background
The cryptocurrency had recovered to $76,000 earlier this week following a broader tech selloff, but the bounce proved short-lived. On-chain metrics show whale wallets have been reducing exposure, while exchange inflows have increased.
Key Perspectives
Bernstein analysts have suggested the current bear cycle could reverse in 2026, with Bitcoin potentially bottoming around $60,000. However, short-term sentiment remains extremely fearful according to the Crypto Fear and Greed Index.
What to Watch
The next major support level sits around $65,000. A break below that could trigger cascading liquidations across derivatives markets.
Sources
- Bitcoin plunges under $70,000 on Bitstamp
- Bitcoin Extends Selloff as Macro Pressures and Leverage Unwind
- Bitcoin slides toward $70,000 as on-chain data flags bear market
- MARA Holdings moves 87 million in BTC as crypto selloff extends
- Bitcoin crash to 60000 has traders hunting for a hidden fund blowup
- ARK offloads 17 million of Coinbase, adds 18 million of Bullish amid crypto rout
- Cathie Woods ARK dumps 17M in Coinbase stock as shares fall 37% YTD
- Crypto market brightens after selloff that sent bitcoin to lowest since October 2024