The crypto market extended its selloff on Tuesday, with Bitcoin falling below $73,000 for the first time since November 2024, triggering sharp swings across major digital assets.
Bitcoin briefly dropped nearly $1,900 in just 25 minutes, wiping out around $70 million in long positions. Minutes later, prices rebounded by more than $1,200, liquidating another $15 million in short positions — a sign of extreme volatility rather than a clear trend.
No Single Headline Trigger
The moves came despite the absence of any major negative news.
In fact, the selloff continued even after President Donald Trump said he had an “excellent” phone call with Chinese President Xi Jinping, discussing trade, military issues, and an upcoming visit to China. Trump also said China may increase U.S. agricultural purchases.
Markets largely ignored the update, underscoring that today’s crypto weakness appears driven more by positioning and sentiment than headlines.
Liquidations Fuel the Drop
Analysts say the sharp moves were amplified by forced liquidations.
As Bitcoin broke below key support levels, leveraged traders were pushed out of positions, accelerating the decline. Once prices bounced, short sellers were also caught off guard, adding to the rapid swings.
This kind of price action is typical during periods of low confidence and high leverage.
Broader Market Under Pressure
Losses were not limited to Bitcoin.
- Ethereum slipped toward $2,100
- XRP fell to around $1.51
- Solana, B