05.02.2026 20:26
The world's largest cryptocurrency has fallen below $70,000 due to intense selling pressure in the spot and derivatives markets. Bitcoin, which has seen its lowest level since October 2024, lost more than 8% of its value during the day.
Bitcoin (BTC) fell to as low as $69,040 on Thursday on some exchanges. This level means that the gains the cryptocurrency had made since its all-time high of $69,000 at the end of 2021 have been completely wiped out. Bitcoin has lost about 30 percent in the last year and 45 percent from its peak in October.
SELLING PRESSURE CONTINUES
The drop below $70,000 occurred during a period when the market structure was rapidly deteriorating. On-chain indicators point to forced selling, weak spot demand, and declining institutional support. Glassnode analysts Chris Beamish and Antoine Colpaert state that the market has entered a defensive phase and that investors are closing positions at a loss. Analysts noted, "Spot BTC volumes are structurally weak and the selling pressure is not met with sustainable buying."
This drop has taken Bitcoin below a critical on-chain cost indicator known as the "True Market Mean." According to Glassnode, losing this level confirms a broad breakdown that has been developing since the end of 2025, and the market exhibits a similar appearance to the early stages of past bear market transitions.
On the other hand, on-chain data also shows early accumulation signals in the $70,000-$80,000 range. The dense cost base cluster between $66,900 and $70,600 could serve as a buffer in the short term. However, analysts warn that realized losses exceeding an average of $1.2 billion daily indicate that fear-driven selling continues.
LONG POSITIONS HIT HARD
Derivative markets deepened the decline. In Bitcoin futures, the largest long position liquidation of this downturn occurred when the price fell to around $70,000. According to CoinGlass data, over $1 billion in crypto liquidations occurred in the last 24 hours, with the vast majority coming from long positions. Considering that exchanges release liquidation data gradually, the actual losses are likely to be much larger than reported.
Downward risk is also continuing to be priced in the options markets. While short-term implied volatility is sharply rising, the downward skew is deepening, and traders are paying premiums for protection.
INSTITUTIONAL INTEREST WEAKENS
Institutional demand has also declined. Net flows for spot Bitcoin ETFs have turned negative across corporate treasuries and government-linked portfolios, eliminating a critical source of support that had backed previous phases of the cycle. U.S. spot Bitcoin ETFs recorded outflows for the second consecutive day on Monday, with a total outflow of $545 million.
This pullback has also put pressure on high-profile Bitcoin treasury strategies. Led by Michael Saylor, Strategy holds over 713,000 BTC at an average cost just above $76,000 and is writing down losses at current prices. ETF investors, whose total cost basis is estimated to be well above current prices, are also facing paper losses.