Massive Liquidation Last Night: The Crypto Market Gets Caught in Global Turmoil

Crypto market excitement was short-lived last night. While investors are still adjusting to the changing environment, a series of events in the global markets have created a domino effect that hit digital assets. Bitcoin dropped from higher levels to $69.63K in the latest movement, with a trading volume reaching $835.78M in 24 hours. The shock experienced last night highlights how fragile market stability is in the face of external pressures.

Domino Effect: From Wall Street to Blockchain

The turbulence began with disappointing Microsoft earnings reports. Slowing Azure growth signaled investor fears about tech momentum, causing the company’s stock to decline significantly throughout the day. This reaction is not just a Wall Street issue—it quickly spread to other markets.

Geopolitical uncertainties in the Middle East also added to the selling pressure. Precious metals, which previously hit historic highs, had to retreat due to shifting capital flows. The combination of macroeconomic concerns and geopolitical risks created an environment unfavorable for high-risk assets.

Bitcoin’s Collapse and Massive Liquidations Last Night

The crypto market could not escape this collective pressure. As investors sought safety, Bitcoin became the victim of forced selling—not due to fundamentals, but because of liquidity needs in other markets. Last night, nearly $1 billion in liquidations occurred, indicating the significant pressure faced by leveraged positions across trading platforms.

Bitcoin’s decline last night reflects a common pattern: when the stock market pressures, funds flow out of risky assets, including crypto. Short-term liquidity shortages caused volatility to spike dramatically, and those with leveraged positions were the first to be affected.

Lessons from Last Night’s Shock

Last night’s events reaffirm that the crypto market is no longer isolated from global market movements. When various assets—from tech stocks to precious metals—move in the same direction, layered pressure on the crypto market becomes difficult to withstand.

The selling momentum last night also underscores the importance of risk management. Massive liquidations show that many traders took on leverage beyond their capacity to withstand. Moving forward, market recovery will depend on whether fundamental pressures ease and whether investors are ready to take on risk again.