Bitcoin drops again… Why?
Bitcoin just plunged below $70,000, wiping out billions of dollars in a few hours. Between massive liquidations and geopolitical tensions, investors are questioning… Why this drop? Is it temporary or the start of a deeper decline?
In brief
- Bitcoin drops to $69,500 due to record liquidations ($273 million) and extreme fear sentiment (Fear & Greed at 10).
- Geopolitical tensions (Iran, Israel, USA) push investors to flee risky assets, worsening selling pressure.
- The expiration of $14 billion in Bitcoin options tomorrow could increase volatility and jeopardize the $75,000 target.
Bitcoin at $69,500: A brutal drop shaking the markets
Bitcoin dropped by 2.35%, falling below the symbolic $70,000 mark to reach $69,502. This decline is accompanied by a record liquidation volume of $273.09 million in 24 hours, reflecting intense selling pressure. Other cryptocurrencies follow the same trend, with Ethereum down 4.54%, Solana down 4.64%, and XRP down 3.16%.
Technical indicators show that Bitcoin is now testing a key support at $68,000. If this level breaks, a new wave of selling could push the market to lower lows. Moreover, trading volumes remain high, a sign of persistent anxiety among traders. This drop is explained by:
- $273 million in positions liquidated in 24 hours, amplifying selling pressure;
- Fear & Greed at 10 (extreme fear), pushing investors to sell to limit their losses;
- Fears of escalation between Iran, Israel, and the United States, prompting fleeing risky assets like BTC.
Expiration of $14 billion in Bitcoin options: an additional risk?
Tomorrow Friday, $14 billion in Bitcoin options expire, which could worsen volatility. Indeed, these options divided between call and put contracts could exert additional pressure on the market if put holders decide to sell massively. Analysts are closely monitoring critical strike levels, especially around $70,000 and $75,000.
Accordingly, if Bitcoin’s price remains below these levels, call holders may not exercise their options, thus reducing buying pressure. Conversely, a drop below $68,000 could trigger a new wave of selling. In this context, the $75,000 target seems increasingly distant. Investors will need to closely monitor market developments after these options expire.
Bitcoin is going through a critical period, marked by a brutal drop and the imminence of $14 billion in options expiring. While geopolitical tensions and investor fear dominate the market, the $75,000 target appears compromised. Do you think BTC could rebound?
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The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.