BITCOIN has now surrendered every gain made since its late-2021 record, falling back toward the $69,000 level as heavy selling swept across both spot and derivatives markets.

The world’s largest digital asset briefly touched $69,040 on Thursday on several major exchanges, marking its lowest price since October 2024, according to The Block. The slide pushed bitcoin below the psychologically important $70,000 mark, a level it had struggled to defend over the past sessions.

At the time of writing, bitcoin was down more than 8 percent on the day. On a yearly basis, the token is now about 30 percent lower and roughly 45 percent beneath its October peak, underscoring the scale of the recent reversal.

Bearish signals multiply

The breakdown below $70,000 reflects a sharp deterioration in market conditions. Onchain data points to forced selling, weak spot market participation, and waning institutional flows. Analysts say the market has shifted decisively into a defensive posture.

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Glassnode described the environment as one of accelerating realised losses, as more holders are now exiting positions at prices below their cost. According to the firm, this behavior is typical of markets transitioning into a bearish phase.

“Spot BTC volumes remain structurally weak, reflecting a demand vacuum where sell-side pressure isn’t being met by sustained absorption,” Glassnode analysts Chris Beamish and Antoine Colpaert said in a research note.

Bitcoin has also slipped below its ‘True Market Mean,’ an onchain metric that tracks the average acquisition price of coins actively in circulation. Glassnode said losing this level confirms a broader breakdown that has been forming since late 2025, with price behavior now resembling the early stages of past bear markets.

Still, there are signs of tentative accumulation. Data shows a growing cluster of buyers between $70,000 and $80,000, with a dense cost-basis zone from about $66,900 to $70,600. This range could act as a temporary buffer against further shocks. However, analysts cautioned that fear-driven selling remains dominant, with realised losses now exceeding $1.2 billion per day on average.

Leverage unwind accelerates

Activity in the derivatives market has magnified the decline. As prices dropped into the low $70,000 range, bitcoin futures recorded their largest wave of long liquidations during the current drawdown, wiping out traders who had rebuilt leverage despite weak spot demand.

CoinGlass data shows that more than $1 billion in crypto positions were liquidated over the last 24 hours, with long positions accounting for most of the losses. Because exchanges release deleveraging figures in stages, the actual total is likely much higher.

Options markets are also flashing caution. Short-dated implied volatility has jumped, and downside skew has steepened as traders pay a premium for protection against further declines.

Institutional support fades

Large investors have also pulled back. Net flows from spot bitcoin ETFs, corporate treasuries, and government-linked holdings have turned negative, removing an important source of demand that previously supported the market.

U.S. spot bitcoin ETFs posted a second straight day of outflows on Monday, totalling $545 million, according to The Block.

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The slump has placed pressure on prominent bitcoin treasury strategies. Strategy, led by Michael Saylor, holds over 713,000 BTC at an average purchase price slightly above $76,000, leaving the firm underwater at current market levels. ETF investors are also sitting on paper losses, as their estimated average cost basis remains well above today’s prices.

A broader risk reset

Market observers say the selloff is less about shifting crypto narratives and more about global balance-sheet stress. Senior financial market analyst at Capital.com, Ms Kyle Rodda, said bitcoin’s decline mirrors a wider deleveraging trend across equities, commodities, and digital assets as volatility spreads through financial markets.

Others believe the move represents a structural reset rather than a short-lived pullback. Co-founder of Coin Bureau, Mr Nic Puckrin, said the market is shifting ‘from distribution to reset,’ a process that historically unfolds over months, not weeks.

Glassnode stressed that the key factor going forward is spot demand. Without a meaningful return of new buyers, bitcoin remains exposed to deeper losses and unstable rebounds.

“Any relief rallies are likely to be corrective rather than trend-reversing,” the firm said, adding that a lasting recovery will depend on time, absorption, and renewed conviction from spot market participants.