Bitcoin dropped below $70,000 on Tuesday for the first time since April, with its price falling more than 5% to $67,692.76, marking its lowest level since April 5, according to Coin Metrics [1]. Ether also declined by 3%, and stocks across the crypto sector experienced losses, with Strategy falling over 8%, Galaxy down 4%, and Coinbase dropping 3% [1].
The sell-off began on Monday after Strategy, a bitcoin treasury pioneer, reported selling a small portion of its bitcoin holdings—its first sale since 2022. Although the sale was anticipated by the company, the move represented a reversal from chairman and founder Michael Saylor's previous 'never sell your bitcoin' stance, which unsettled investors [1].
This event triggered a cascade of long liquidations, intensifying the downward pressure on bitcoin's price. Leveraged traders betting on higher prices were forced out of their positions, leading exchanges to automatically sell their holdings to cover losses. Over the past 24 hours, crypto exchanges recorded $594 million in long liquidations, according to CoinGlass [1].
Bitcoin has struggled to recover toward its October record of over $126,000, as ongoing uncertainty around the U.S.-Iran war has kept prices under pressure, even as the stock market has reached new highs. This has cast doubt on bitcoin's dual narratives as 'digital gold' and as a high beta tech stock [1]. Additionally, bitcoin ETFs registered their 11th consecutive day—and longest streak ever—of net outflows on Monday, according to SoSoValue [1].
CONCLUSION
Bitcoin's drop below $70,000, driven by Strategy's first bitcoin sale since 2022 and a wave of long liquidations, has shaken investor confidence and led to significant losses across the crypto sector. Persistent ETF outflows and geopolitical uncertainty continue to weigh on bitcoin's price, challenging its established market narratives.