Global cryptocurrency markets extended their sell-off on Thursday, pushing total market capitalisation down to approximately $2.4 trillion, as leading digital assets including Bitcoin (BTC) and Ethereum (ETH) declined to new short-term lows.
Bitcoin was trading around $70,698, hovering just above a critical psychological support level, while Ethereum slipped below $2,100, reflecting mounting selling pressure across the broader digital asset ecosystem. Other major tokens also recorded sharp losses, with BNB falling to $689, XRP retreating to $1.36, and notable declines seen across Solana, Cardano, and Dogecoin.
Market data shows the overall cryptocurrency market declined by approximately 5.6 per cent within 24 hours, as risk assets reacted to a combination of macroeconomic uncertainty and shifting U.S. policy expectations. Analysts attributed the downturn largely to institutional deleveraging, following renewed concerns over the absence of government support for the crypto sector during periods of financial stress.
Price action across major cryptocurrencies mirrored movements in traditional markets, with analysts noting a strong correlation between digital assets, the S&P 500, and gold. This alignment suggests the sell-off is being driven by broader macroeconomic forces rather than crypto-specific fundamentals alone.
According to market observers, remarks linked to incoming U.S. Treasury leadership — particularly a reaffirmed no-bailout stance for crypto-related institutions — removed a perceived backstop that had previously supported leveraged positions. As a result, large institutional players were forced to unwind exposure, particularly in Bitcoin.
On-chain and derivatives data indicate that Bitcoin liquidations exceeded $415 million within 24 hours, representing a 61 per cent increase over the previous day. The rapid liquidation cycle intensified downward momentum as institutional selling converged with heightened retail fear.
Technical indicators further exacerbated the decline, with several major assets breaking below key support levels amid what traders described as an “extreme fear” sentiment environment. This triggered algorithmic selling and stop-loss cascades, accelerating the market-wide drawdown.
Analysts say Bitcoin’s ability to hold the $70,000–$72,000 support range will be critical in determining near-term direction. A sustained defense of this zone could open the door to a relief rally toward $78,000, while a decisive break lower may expose the market to a deeper correction toward $63,800.
Attention is now focused on U.S. Initial Jobless Claims data, which could shape risk appetite across global markets. A weaker-than-expected reading may intensify macro-driven selling pressure.
For the broader crypto market, the $2.43 trillion level is viewed as a pivotal technical threshold. Holding above this zone could allow prices to stabilise within a $2.43 trillion to $2.62 trillion range, while a failure may signal further downside.
Market participants remain cautious, with analysts emphasising that the next major move will depend on incoming macroeconomic data and Bitcoin’s ability to maintain key psychological support.
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