Bitcoin price plummets to below $70k: What happened?
Bitcoin slipped under $70k, and the timeline went feral. Here’s what mattered, what was hype, and why the drop looked like a trapdoor, not a gentle dip.
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Liz Thorne
Bitcoin dropped under $70,000 (1.26 million ZAR at the time of writing) today, and the fall felt brutal because it took out a massive psychological level in one go, with the price sliding into the high-$60,000s soon after. One part of the story is the usual crypto vs rand maths that can make a “dollar chart” look different once you translate it to rands.
The other part is timing. A broader risk-off week was already pressuring markets, then Bitcoin joined the sell-off party as tech shares sank and nerves spread. Volatility is where people discover whether their setup is self-custody versus exchange accounts.
What hit Bitcoin under $70k?
Risk assets were beaten up, and crypto came along for the ride
Bitcoin did not fall in isolation. US equity indices slid again, with tech firmly in the firing line. Investor unease ranged from questions around AI spending costs to weaker macro data, all feeding a defensive mood.
Macro headlines turned sour, fast
Fresh labour market data was released, and jobless claims came in above expectations, while January layoff announcements rose above 108,000, the highest January figure since 2009. Those numbers matter because they shape expectations around interest rates, recession risk, and whether investors want exposure to volatile assets at all.
Bitcoin is not “broken” because it dropped. It is a high-volatility asset in a world where sentiment can flip in hours. When broader markets wobble, crypto rarely plays the hero, it tends to get thrown under the bus first.
Forced sell-offs stacked on top of each other
Once prices started sliding, derivatives mechanics took over. Many traders were positioned in futures that depended on the price holding above key levels. When those levels broke, exchanges automatically closed positions, creating more selling and triggering further liquidations.
Why it looked like a trapdoor, not a normal dip
ETF flows were already ugly
Spot Bitcoin ETF outflows had been heavy in the weeks leading up to the drop, reducing natural buying support exactly when it was needed most. Large, sustained outflows matter during fragile periods, regardless of how you feel about ETFs.
Key levels matter because humans are weird
$70k is not magical, but it is widely watched. When the price broke below it, algorithms and human traders reacted at the same time, accelerating the fall. That is why these moves can feel sudden, even when weakness has been building.
This is why “it dropped 5%” is never the full story. The more important detail is how many forced exits happened on the way down, and how quickly buyers stepped back.
What it means for South Africans watching from the side of the rand
Your rand chart is a two-factor problem
Bitcoin is priced globally in dollars, then viewed locally through USD/ZAR. A weaker rand can soften the rand-based drop, while a stronger rand can amplify it. This is not crypto complexity, it is currency maths.
The wrong reaction is “I must do something now”
Sharp red candles trigger panic, and panic leads to fees, poor entries, and regret. A calmer approach is dull but effective: know why you own Bitcoin (or why you do not), know your time horizon, and avoid borrowed-risk positions in a market that can gap lower while you sleep.
If you bought because TikTok promised straight-line wealth, this week is your tuition. If you bought as a long-term risk bet, this week is another reminder to size it so a drawdown does not wreck your month.
What to watch next
Broader market sentiment still matters. Continued weakness in tech can keep pressure on crypto. Liquidation data can show when forced selling begins to fade. ETF flow trends indicate whether larger buyers are stepping back in. Longer-term on-chain reference levels are widely watched, but they are signals, not guarantees.
The bigger takeaway is simple: Bitcoin under $70k is not a single dramatic event. It is the result of risk-off sentiment, poor flows, and liquidation mechanics all colliding at once.
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