Bitcoin plummeted nearly 8% on Thursday, reaching lows close to $70,000, as declining liquidity and a broad sell-off of global tech stocks put new pressure on risk assets.
The reports showed that liquidity was notably scarce, amplifying price movements and contributing to a cascade of forced liquidations after bitcoin fell below widely watched thresholds.
The drop followed a sharp sell-off of global tech stocks overnight, where concerns about the pace of artificial intelligence adoption and increased capital spending by major companies weighed heavily on valuations.
The movement was exacerbated by a strong liquidation of leveraged positions, particularly in the derivatives markets, after the drop of bitcoin below the $75,000 level triggered stop-loss orders.
