Bitcoin opened Thursday’s Asian trading session with a sharp sell-off, plunging to $72,600 and wiping out a substantial portion of leveraged positions across the crypto market. The leading cryptocurrency dropped 4.5% from its Wednesday peak of $76,050, marking its lowest level in six weeks at $72,620.
Massive liquidation erases $935 million in a day
In the past 24 hours alone, nearly $935 million in leveraged crypto positions were liquidated globally. The largest single liquidation was a $15.34 million long position on BTC at Hyperliquid. This market turbulence was attributed to waning risk appetite following U.S. military operations against Iran.
Analyst Nicrypto noted that “overnight U.S.-Iran tensions triggered mass closures of leveraged positions, accelerating the sell-off.”
The drop was not limited to Bitcoin; major altcoins also saw heavy declines, resulting in a $80 billion reduction in total market capitalization. Notably, $228.5 million worth of long ETH positions were liquidated during the turmoil.
Sharp decline in market metrics
The derivatives market reflected the turmoil as well. According to CoinGlass, open interest in Bitcoin fell sharply, declining by 9.8% at the Chicago Mercantile Exchange and 9% on BingX. This reduction signals lower leverage and a pullback in investor participation.
Earlier this year, between January 14 and February 6, a 30% drop in open interest coincided with a 38% decline in BTC price. Analysts see this as an indication that the market’s downward trend may not yet be over.
ETF outflows add to pressure
Spot Bitcoin ETFs in the U.S. recorded outflows for the eighth consecutive day. The total outflow reached $2.6 billion, with a single-day outflow of $733 million on Wednesday—marking the largest single day of ETF withdrawals this year. Globally, Bitcoin investment products experienced $1.3 billion in outflows last week.
The latest sell-off was exacerbated by Bitcoin breaking below key support levels. Over the past 24 hours, BTC dropped 4% and fell beneath the crucial $75,000 support. Experts warn that if Bitcoin slips below the strong support area between $71,400 and $73,400, a fall toward $65,000 could follow according to technical analysis.
MN Capital founder Michael van de Poppe commented that such corrections are typical at the end of the month as asset managers rebalance portfolios. Another analyst cautioned that losing the $70,000 level could trigger another wave of strong selling.
Investors are closely watching the 100-day simple moving average at $73,000 and the accumulation zone above $70,000. If demand does not reemerge in these areas, further declines in BTC could be on the horizon.
Mini glossary: Open Interest – In derivatives markets, this indicator shows the total number of outstanding contracts yet to be closed. A decline in open interest suggests decreasing leverage, slower new participation, and typically lowered risk appetite in the market.
