On the Chain: Bitcoin crashes below US$70,000 as US$622 million liquidation wave hits crypto

Bitcoin has crashed below US$70,000 as another sharp risk-off move triggered hundreds of millions of dollars in forced liquidations and pushed the broader cryptocurrency market deeper into fear territory.

Bitcoin fell as low as US$68,943 on Friday before recovering towards US$69,000-US$70,000, leaving it around 6% lower over 24 hours.

Ethereum was trading around US$1,990, while Solana fell to about US$80. BNB was around US$635 and XRP hovered close to US$1.01.

Total cryptocurrency market capitalisation has fallen to roughly US$2.4 trillion, with market sentiment sitting in “extreme fear” territory.

Liquidations accelerate the fall

The break below US$70,000 triggered a rapid unwinding of leveraged bullish positions.

Around US$622 million of crypto positions were liquidated in just four hours, with long traders bearing the overwhelming majority of the losses.

Bitcoin had been trading above US$76,000 earlier this week, highlighting the speed of the latest decline.

The drop below US$70,000 also activated clusters of leveraged positions positioned around the psychologically important support level, amplifying selling as exchanges automatically closed losing trades.

ETF withdrawals continue

Institutional flows remain another major headwind.