Crypto Liquidations Top $700M: Altcoins Face Margin Carnage as Bitcoin Hovers Near $70K

If you thought crypto was a one-way ticket to generational wealth, the last 24 hours have been a reality check. Over $700 million in leveraged positions have been vaporized across the market, with Bitcoin clinging to the $70,000 handle like a cat to a windowsill. Ethereum is stuck in a rut around $2,100, and altcoins are getting the kind of attention usually reserved for penny stocks in a bear raid.

The numbers are ugly. Bitcoin has dropped to its lowest level since 2024, and the broader crypto market is under pressure as forced liquidations cascade through the system. According to Coinpedia, the selloff was triggered by a sharp wave of liquidations that didn’t discriminate, Bitcoin, Ethereum, and altcoins all got dragged into the abyss. Cardano’s ADA was unceremoniously booted from the top 10 after a sharp selloff, despite the announcement of 32 new tools and a major AI upgrade. Vitalik Buterin has been dumping ETH, and DeFi TVL has slipped below $100 billion.

Stifel is out with a note predicting Bitcoin could crash to $38,000, yes, you read that right, using an analogy from 'The Curious Case of Benjamin Button.' Bhutan, of all places, is moving $22 million in Bitcoin to a market maker, and ARK Invest is buying crypto stocks as the price falters. The only thing that hasn’t changed is the script: Bitcoin leads, Ethereum follows, and liquidity eventually trickles down to the altcoin graveyard.

This is not just another crypto correction. The selloff is exposing the fragility of a market built on leverage and hopium. The last time liquidations topped this level, it took months for confidence to return. The difference now is that the macro backdrop is less forgiving. Tech stocks are in freefall, risk sentiment is in the gutter, and the usual safe havens aren’t offering much comfort.

The historical parallels are instructive. Crypto has always been a volatility machine, but the current drawdown feels more systemic. The 2021 bull market top around $69,000, $70,000 is now acting as the 'absolute last ditch defence of the bulls,' according to CryptoDaily. If that level gives way, there’s not much standing between Bitcoin and a retest of the mid-$60,000s, or worse.

Altcoins are bearing the brunt. ADA’s fall from grace is emblematic of a broader rotation out of risk. XRP is at a 15-month low, and DeFi protocols are bleeding TVL. Even the so-called 'smart money' is getting cautious, with capital flowing into Bitcoin Layer 2s rather than chasing the next meme coin.

The real story is that the market is finally being forced to reckon with leverage. The days of easy money and perpetual up-only charts are over, at least for now. The forced unwinds are painful, but they’re also necessary. The question is how much more pain the system can absorb before something breaks.

Strykr Watch

Technically, Bitcoin is holding the $70,000 level by its fingernails. The 200-day moving average is down at $62,500, and the next major support is at the 2021 bull market top around $69,000. If that fails, the $65,000 zone comes into play. Resistance is stacked at $72,000 and again at $75,000. Ethereum’s support at $2,000 is looking shaky, and a break there could open the floodgates to $1,800. Altcoins are in freefall, with no clear bottom in sight. RSI for Bitcoin is at 38, signaling oversold but not yet capitulation.

The liquidation data is telling. Overleveraged longs are getting torched, and funding rates have flipped negative across the board. Open interest is down sharply, suggesting that the forced unwind is still in progress. If Bitcoin can reclaim $72,000, a short squeeze is possible, but the path of least resistance is still lower.

Risks abound. If Bitcoin loses $69,000, technical selling could accelerate. Regulatory headlines or another DeFi exploit could add fuel to the fire. The risk of a 'Stifel scenario', a crash to $38,000, is low but not zero.

Opportunities exist for nimble traders. A bounce off the $69,000 level with a tight stop offers a high-risk, high-reward setup. Alternatively, shorting failed rallies to $72,000 with a stop at $73,000 could pay off if the downtrend resumes. For the brave, accumulating spot on further panic could set up for a long-term rebound, but only with ironclad risk management.

Strykr Take

This is what real capitulation looks like. The market is purging excess leverage, and that’s a good thing in the long run. But don’t kid yourself, there’s more pain ahead if key supports break. For now, the only trade that matters is managing risk. Wait for the dust to settle before betting big on a rebound.