Bitcoin extended its slide on Wednesday, dropping below $75,000 and trading around $73,000, its lowest level since early November 2024. The move erased the full rally that followed Donald Trump’s election. Strategy Inc. fell 8% to its weakest level since September, while Solana (SOL) and Ethereum (ETH) lost about 7% and 5%.
Crypto selloff tracks broader risk-asset weakness
The decline came at the same time as a wider retreat in risky assets. The tech-heavy Nasdaq 100 continued to fall, with AMD, AppLovin, and Palantir each down more than 10%. Investors have remained focused on concerns around the AI industry and its effect on sectors such as software. ServiceNow, Adobe, Intuit, and Salesforce have all dropped more than 50% from their all-time highs.
The iShares Expanded Tech-Software ETF also logged a seventh straight losing session, retreating to levels last seen when President Trump announced his tariff plans in April 2025. That risk-off mood spread into digital assets.
Middle East tensions add to market pressure
The report also linked the crypto decline to rising concern over the Middle East. Trump has sent an armada, with the stated aim of attacking Iran. Talks between the two sides are scheduled to take place in Turkey on Friday, but most geopolitical analysts cited in the article believe an attack will still happen. The Trump administration has made demands that the report says Iran will not accept, including ending its civilian nuclear energy program and reducing its ballistic missiles.
Commodity markets have also reflected those fears. Gold, often treated as a safe-haven asset, moved back above $5,000, while crude oil rose to nearly $70. As defensive positioning increased, crypto remained under pressure.
Extreme fear and liquidations deepen the drop
The Crypto Fear and Greed Index fell to 14, placing the market in extreme fear territory. According to the report, cryptocurrencies often decline when traders turn defensive. It also noted that an earlier rally this year, when Bitcoin climbed to $98,000, began after the index had dropped to an extreme fear reading of 10.
Liquidations added to the volatility. Data cited in the article show that total liquidations jumped 192% over the past 24 hours to more than $794 million. More than 174,000 traders were liquidated, with Ethereum and Bitcoin accounting for the largest share. Ethereum positions alone saw $307 million in liquidations during that period.