According to Woofun AI, the U.S. digital asset market experienced severe turbulence on the 12th local time, with Bitcoin losing the key psychological threshold of $72,000, directly triggering large-scale forced liquidation of derivatives.
This downward market trend is not an isolated event, but rather the combined result of sustained outflows from physical ETFs and weakness in U.S. tech stocks.
Investor risk appetite contracted significantly, and the cascading liquidations of leveraged long positions further amplified the decline, causing Bitcoin to eventually fall back to around $71,000, while other mainstream cryptocurrencies also came under synchronized pressure.
Liquidity across the entire market showed clear signs of deterioration under selling pressure.
In terms of specific asset performance, CoinMarketCap data showed that the total global digital asset market capitalization shrank to $2.39 trillion on that day, down 3.39% from the previous day.
Meanwhile, 24-hour trading volume rose against the trend by 16.98% to $70.28 billion — this divergence between volume and price highlights the intense turnover and selling pressure in the market.
Bitcoin (BTC) fell 4.11% on the day to $71,386.56; Ethereum (ETH) dropped 3.06% to $2,016.14, with its market share maintained at 60.2%.
Other mainstream tokens also performed poorly: Binance Coin (BNB) fell 4.72% to $653.67; Ripple (XRP) declined 2.76% to $1.03; SOL dropped 4.13% to $81.43; Dogecoin (DOGE) fell 4.05% to $0.06582.
The privacy coin sector saw even more dramatic fluctuations, with ZEC falling 5.40% to $948.42 and XMR plunging 7.75% to $542.96.
In contrast, Tron (TRX) showed relatively strong resilience, declining only 0.49% to $0.3153.
Data compiled by Woofun AI shows that the liquidation storm in the derivatives market was the core variable in this market movement.
Total liquidations within 24 hours reached as high as $677.68 million, of which long position liquidations accounted for approximately $637.8 million, representing nearly 89%.
This means the vast majority of investors betting on price increases were forced to close their positions due to insufficient margin, and this passive selling behavior created a negative feedback loop, exacerbating downward pressure on the spot market.
Open interest value dropped to $338.85 billion, down 2.12% from the previous period.
On the macro level, the news of NVIDIA (NVDA.US) CEO Jensen Huang's resignation became the last straw that crushed market sentiment, triggering deterioration in tech stock investment psychology.
Cryptocurrency analyst @CryptoReviewing pointed out that BlackRock (BLK.US) Bitcoin ETF (IBIT.US) has seen capital outflows for 9 consecutive trading days, and combined with Strategy (MSTR.US) possibly being removed from related indices, institutional-level selling pressure cannot be ignored.
The current market sentiment indicator "Fear and Greed Index" has dropped to 23, placing it in the "extreme fear" range.
Digital asset analyst @mikavandepope analyzed that Bitcoin's main support range is between $70,000 and $71,500.
If the price can successfully break through the $75,000 resistance level, it is expected to first rebound to $76,700 and then challenge the $80,000 level.
However, he emphasized that only a recovery confirmed after a bottom is established and accompanied by significantly increased trading volume can be considered a reliable buy signal.
Market participants are closely watching whether forced liquidations stabilize and the effectiveness of the $70,000 support level, which will be the key watershed determining short-term trends.
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