Bitcoin slid under $73,000 on Thursday, triggering a wave of forced selling that pushed crypto liquidations close to $1 billion. The rout unfolded as rising U.S.-Iran tensions rattled risk assets and spot Bitcoin ETFs saw fresh outflows, compounding pressure on an already fragile market.
Liquidations near $1B
Data from major tracking platforms showed roughly $980 million in leveraged positions liquidated across centralized exchanges over a 24-hour window. Longs took the brunt — roughly 85% of the total — as bitcoin's drop accelerated through the day. Ether and altcoins followed, though losses were less severe proportionally.
The cascade hit most major trading platforms. Binance, OKX, and Bybit each reported hundreds of millions in forced closures. Funding rates flipped negative on several perpetual swap contracts, a sign that longs had been caught off guard.
Iran tensions escalate
The selloff coincided with a sharp escalation in rhetoric between Washington and Tehran. Reports this week pointed to increased naval deployments in the Strait of Hormuz, and diplomatic channels appeared to stall. For crypto traders, the geopolitical uncertainty translated into a broad risk-off move — bitcoin briefly touched $71,800 before a partial recovery.
It's not the first time Middle East tensions have jolted crypto markets. But the speed of Thursday's decline — over $2,000 in about three hours — caught many by surprise.
ETF outflows accelerate
Spot Bitcoin ETFs in the U.S. logged net outflows for a fourth straight session, with preliminary data showing more than $300 million pulled on Wednesday alone. BlackRock's IBIT saw its first net redemption in weeks, while Grayscale's GBTC continued its steady bleed.
The outflows suggest institutional investors are paring exposure ahead of what could be a volatile summer. That's a reversal from the strong inflows seen in April, when prices held above $80,000.
What traders are watching
With bitcoin struggling to hold $73,000, the next support level around $70,000 is now in focus. A break below that could accelerate liquidations further. On the macro side, any diplomatic breakthrough or further deterioration in U.S.-Iran relations will likely dictate direction in the near term. The CME Bitcoin futures gap from last weekend also looms — traders often expect price to fill such gaps.
For now, the market is nursing its wounds. Open interest has dropped roughly 8% since Wednesday's peak, suggesting the leverage purge isn't over yet.
