Crypto News
Bitcoin slid to a two-week low of $76,500 in early trading, shedding more than 2% as geopolitical shockwaves from US-Iran tensions collided with a dangerously crowded long side in crypto derivatives. More than $500 million in long positions were liquidated in a 60-minute window, with roughly $300 million of that concentrated in BTC futures as price broke below the $77,000 level. The cascade exposed just how one-sided bullish positioning had become heading into the move.
Why it matters
The selloff is macro-driven, not crypto-native. Oil pushed toward $100 a barrel on the Iran escalation, Nasdaq 100 futures are sitting roughly 10% off January highs, and BTC's correlation to tech stocks dragged the asset lower with the rest of risk. Spot BTC ETFs — the flow engine behind Q4 2025's rally — have seen inflows slow and flip to net outflows in recent sessions, removing a key marginal buyer just as macro headwinds accelerate. The combination of a thinning bid and crowded leveraged longs is the textbook setup for a liquidation cascade of exactly this shape.
Market impact
BTC is now 28% below its all-time high, trading in a wide $60,000–$80,000 consolidation band with the one-month range compressed between $73,800 and $82,800. The $73,800–$75,000 zone is the critical floor; a daily close below it opens a path toward $60,000–$66,000. But the bigger variable is the roughly $14 billion in BTC options open interest approaching expiry — that overhang could pin price near current strikes in the short term, then release a volatility spike in either direction once positions roll. On-chain exchange outflows remain elevated, a sign of ongoing self-custody accumulation that typically signals longer-term buyer conviction even during weakness. The open question is whether those structural buyers can absorb continued macro-driven selling, or whether the ETF outflow trend accelerates as institutional desks derisk into the options expiry.
Frequently asked questions
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Why did Bitcoin drop to a two-week low this week?
BTC slid to $76,500 as US-Iran geopolitical tensions pushed oil toward $100 a barrel and Nasdaq 100 futures roughly 10% below January highs. Bitcoin's correlation to tech stocks dragged it lower alongside broader risk assets, while a crowded long side in derivatives accelerated the move through forced liquidations.
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How much in crypto longs was liquidated during the selloff?
More than $500 million in long positions were liquidated in a 60-minute window, with roughly $300 million of that concentrated in BTC futures as price broke below the $77,000 level. The cascade exposed how one-sided bullish futures positioning had become heading into the move.
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What level does Bitcoin need to hold to avoid a deeper drop?
The $73,800–$75,000 zone is the critical near-term floor. A daily close below $73,800 would open a path toward the $60,000–$66,000 demand zone and 52-week low territory, where longer-term buyers have historically stepped in.
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How are spot BTC ETF flows affecting the price action?
Spot BTC ETFs, which drove much of Q4 2025's rally, have seen inflows slow and flip to net outflows in recent sessions. The loss of that marginal buyer at a moment of macro stress removes a key source of demand that might otherwise have absorbed the selling pressure.
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What is the $14 billion BTC options expiry and why does it matter?
Roughly $14 billion in BTC options open interest is approaching expiry in the near term. That overhang could pin price near current strikes in the short term, then release a sharp volatility move in either direction once the positions roll off — making the post-expiry window a key catalyst for the next directional leg.
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