The cryptocurrency market’s downward momentum intensified with more than $1 billion in liquidations recently reported across leading digital assets including Bitcoin, Ethereum, XRP, and Solana. Bitcoin’s price fell below $73,000, while Ethereum dropped past the $2,000 mark, reflecting steep declines amid compounded macroeconomic, technical, and geopolitical challenges.
Market data revealed that over 165,000 traders were liquidated, with Bitcoin alone seeing $365 million in liquidations, largely from long positions. In one striking example, a single BTC liquidation order reached $15.34 million on the Hyperliquid platform. The surge in liquidations corresponded with geopolitical upheaval, particularly following new US military strikes on Iranian missile sites, which in turn escalated tensions between the two nations and spooked investors.
Altcoins also suffered significant losses. XRP, Binance Coin, Cardano, Dogecoin, and Solana all declined between 3% and 7%, while newer AI-related tokens like RENDER, VIRTUAL, and WLD faced heavier drops of 10% to 13%. The overall crypto market capitalization shrank by more than $120 billion within the past week, deepening investor anxiety as the Crypto Fear & Greed Index slipped further into extreme fear territory.
Underlying factors contributing to the selloff include macroeconomic risks such as rising US Treasury yields, which reversed a multi-day decline due to the US-Iran conflict. The 10-year Treasury yield surged above 4.45%, increasing inflation concerns and adding pressure on the Federal Reserve’s interest rate outlook. The strengthening US dollar, with the dollar index climbing above 99.5, also contributed to negative sentiment across cryptocurrencies.
Exchange-traded funds (ETFs) tied to Bitcoin and Ethereum experienced substantial outflows, marking the eighth straight day of withdrawals. Bitcoin ETFs saw outflows totaling over $730 million, notably with BlackRock’s Bitcoin ETF accounting for $528 million in redemptions. Ethereum ETFs recorded nearly $67 million in outflows, further signaling waning investor confidence amid market turbulence.
Technical analysis highlighted bearish signals for key cryptocurrencies. Bitcoin’s daily chart formed a bearish engulfing pattern, suggesting a potential price reversal and amplifying downward pressure ahead. These technical setbacks coincide with broader risk-off sentiment, intensifying challenges for the crypto market.