Bitcoin fell below the $70,000 support level for the first time since late 2024, hitting a session low of $69,074.
Total market liquidations exceeded $830 million in 24 hours, with leveraged long positions bearing the brunt of the volatility.
Analysts cite the nomination of Kevin Warsh for Federal Reserve Chair and high miner production costs as primary bearish catalysts.
Bitcoin plummeted below the critical $70,000 mark on Thursday, sending the digital asset to its lowest valuation in over 15 months. The sell-off, which accelerated during early trading hours, has forced the market into what analysts describe as a “full capitulation” phase, characterized by massive deleveraging and a collapse in investor sentiment.
According to market data, Bitcoin reached a low of $69,074, a price point not seen since November 2024. The sudden move triggered a cascade of forced liquidations across major exchanges, totaling more than $830 million in a single day. Over the past week, the broader crypto market has seen approximately $6.7 billion in leveraged positions wiped out, as short-term holders and momentum traders exit their positions.
Market observers point to a combination of macroeconomic shifts and structural industry pressure as the primary drivers of the downturn. The recent nomination of Kevin Warsh to succeed Federal Reserve Chair Jerome Powell has introduced fresh anxiety regarding a potentially more restrictive monetary regime. Traders are increasingly concerned that Warsh’s history of balance-sheet skepticism could lead to tightened liquidity, weighing heavily on speculative assets like Bitcoin.
“It is clear the crypto market is in full capitulation mode,” noted Nic Puckrin, co-founder of Coin Bureau. “This is no longer a short-term correction, but rather a transition from distribution to reset—and these typically take months, not weeks.”
The pressure is particularly acute for the mining sector. With the average production cost estimated at $87,000, the current price leaves most operators at a significant loss. Reports indicate that miners are liquidating reserves to cover operational overhead and debt obligations, a phenomenon known as “miner capitulation” that adds sustained selling pressure to the order books.
Despite the bearish momentum, some technical indicators suggest a bottom may be forming. On-chain data tracking the “Profit/Loss Supply” metric shows a convergence that has historically preceded cycle lows. While the Crypto Fear & Greed Index has plunged to a reading of 16—indicating “extreme fear”—institutional outflows from spot Bitcoin ETFs have begun to show signs of slowing, even as $1.62 billion exited the funds earlier this year.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
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