Bitcoin Price Falling as $70K Support Break Triggers Sell-Off

Bitcoin price falling sharply after breaking $70,000 support as hawkish Fed fears, weak US data, ETF outflows, and tech stock losses pressure crypto markets

Bitcoin price falling sharply on Thursday after the cryptocurrency lost the crucial $70,000 psychological level, a breakdown that analysts had repeatedly warned could trigger accelerated losses. The world’s largest digital asset is now down more than 22% over the past week and nearly 10% on the day, reflecting a broad shift away from risk assets.

The move below $70,000 marked a decisive technical failure, unleashing heavy sell pressure and large-scale liquidations across derivatives markets. Once this level gave way, downside momentum intensified rapidly.

Hawkish Fed expectations weigh on risk assets

A key driver behind the decline has been rising macroeconomic uncertainty. Markets turned risk-averse following the appointment of Kevin Warsh as US Federal Reserve Chair, which increased expectations of a more hawkish monetary policy stance. This shift pushed the US Dollar Index above 97.5, tightening financial conditions globally.

As liquidity conditions worsened, Bitcoin price falling tracked weakness across equities and other speculative assets, underscoring crypto’s sensitivity to shifts in monetary policy expectations.

Weak US data fuels recession fears

Investor sentiment deteriorated further after disappointing US labour market data. Private payrolls increased by only 22,000 in January, well below forecasts, reigniting concerns of an economic slowdown or potential recession.

These fears prompted a rotation into safer assets such as US Treasuries, draining liquidity from higher-risk markets. In this environment, Bitcoin price falling has struggled to find sustained buying interest.

Tech stock sell-off adds pressure

Losses in major technology stocks have compounded Bitcoin’s decline. AMD shares plunged 17% after issuing a weaker-than-expected earnings outlook, while Nvidia fell more than 3%. Bitcoin, often viewed as a proxy for high-growth and tech exposure, moved lower alongside equities, reinforcing the risk-off narrative.

Institutional outflows and technical damage

Institutional demand has also weakened significantly. US spot Bitcoin ETFs have recorded $2.9 billion in outflows over the last 12 sessions, with total redemptions approaching $6 billion since November. Meanwhile, stablecoin supply has contracted for the first time since 2023, signaling reduced capital inflows into crypto markets.

From a technical standpoint, Bitcoin price falling below $70,000 wiped out nearly $800 million in long positions and briefly pushed prices under the $68,000 level near the 200-week EMA. Unless bulls reclaim these levels with strong volume, analysts warn downside risks remain elevated, even as some traders anticipate a short-term relief rally driven by a potential short squeeze.