Bitcoin Falls Below $73K as US Stock Sell-Off Triggers Liquidations
Bitcoin dropped to a 2026 low of $72,945 after bulls failed to hold $80,000, driven by a US stock sell-off and heavy futures liquidations. Year-to-date BTC is down about 15% and roughly 45% below its all-time high of $126,267. Weakness in major AI-linked stocks (NVIDIA, Microsoft, Amazon) and broader S&P 500 pressure amid concerns over AI infrastructure costs and upcoming earnings have amplified risk-off sentiment. On-chain and derivatives data show substantial liquidations: roughly $127.25 million in BTC long liquidations and $159.1 million in ETH long liquidations. Strive VP Joe Burnett said current BTC price action around $74,000 is “within historical norms,” noting a 45% drawdown aligns with past volatility. Order-book data from TRDR.io indicates bids concentrated between $71,800 and $63,000, suggesting a potential support zone if buyers step in. Traders should watch macroeconomic and corporate earnings catalysts closely, as continued equity weakness and leveraged liquidations could extend downside, while buy-side interest in the $71.8K–$63K band could stabilize prices. This is not investment advice.
Bearish
The news points to near-term bearish pressure. BTC fell to a 2026 low amid a broader US equity sell-off and sizable futures liquidations, which typically amplify downside through forced deleveraging. Key indicators supporting a bearish classification: (1) Significant liquidations — $127M in BTC longs and $159M in ETH longs — indicate leverage-driven selling; (2) Correlation with weak AI-related mega-cap stocks and indices suggests macro/sector risk is transmitting to crypto; (3) Order-book shows bids clustered between $71,800 and $63,000 but no confirmed strong buy-side response yet, leaving room for further declines if equities remain under pressure. Historical parallels include BTC drawdowns during equity risk-off episodes (for example, 2022 drawdown periods) when leverage and correlated sell-offs extended losses before eventual recovery. Short-term implication: elevated volatility, potential further declines if earnings disappoint or liquidations continue; traders should manage leverage, set stops, and watch the $71.8K–$63K buy zone for potential support. Long-term implication: analysts cited that a 45% drawdown can fall within historical volatility for a nascent, monetizing asset — suggesting the move may not invalidate longer-term bullish narratives if macro fundamentals and institutional demand reappear. Overall, the immediate outlook is bearish until macro risk abates or clear buy-side absorption appears in the order book.