Market Downturn
Cryptocurrency markets opened Thursday deep in the red, prompting traders to question the cause of the decline. Bitcoin briefly dipped below $73,000, with major altcoins such as Ethereum, Solana, XRP, and BNB following suit. The downturn coincided with a wave of liquidations, record outflows from the IBIT ETF, and escalating tensions between the United States and Iran following reported strikes in the Middle East.
Trump’s Pro-Crypto Stance
Despite the market chaos, former President Donald Trump reiterated his pro-crypto stance, stating he would “never let crypto down” while criticizing former SEC Chair Gary Gensler. Trump also pledged to establish a future-proof digital asset framework.
Liquidations and Market Volatility
The dominant narrative focused on the market’s decline, with CoinGlass data indicating $936 million in liquidations over the past 24 hours. Long positions accounted for $873 million of the sell-off. Bitcoin alone saw $355 million in liquidations, followed by Ethereum at $242 million. Solana, XRP, and BNB futures also experienced notable losses.
This decline occurred amid a broader risk-off shift in global markets. Geopolitical uncertainty related to the Trump-Iran situation pushed investors away from speculative assets, and crypto futures open interest decreased by 1.2%.
Pressure intensified ahead of Friday’s significant options expiry, with $7.5 billion in crypto contracts set to settle. Bitcoin’s max pain level is near $69,000, while Ethereum’s is under $2,000, potentially leading to increased volatility.
Other Contributing Factors
Pump.fun continued to sell off SOL, dumping another 100,000 tokens worth $8.3 million as part of its $780 million sell-off campaign.
BlackRock’s IBIT ETF experienced its largest single-day outflow, shedding $527.8 million. The redemption extended the fund’s losing streak to eight consecutive trading days, bringing total outflows close to $1.8 billion. This contributed significantly to Bitcoin’s drop.
The IBIT ETF weakness coincided with rising Treasury yields and a flight from risk assets. While Grant Cardone’s firm reportedly purchased an additional 130 BTC during the dip, bullish narratives were overshadowed by the ETF selling pressure.
Geopolitical Impact
Tensions between the United States and Iran further contributed to market weakness after reports of strikes in the Middle East. Bitcoin lost momentum below $73,000 as investors sought safer assets.
Trump continued to reinforce his support for crypto, criticizing Gensler and the “anti-crypto army” while promising to establish permanent digital asset market structure legislation.
Senator Cynthia Lummis urged Congress to send the Clarity Act to Trump immediately, warning that failure to pass the bill this session could undermine the United States’ position in the global crypto landscape.
Long-Term Bullish Developments
Despite the sell-off, several long-term bullish developments persist. VanEck CEO Jan van Eck remains optimistic about Bitcoin’s long-term prospects, although he noted that 2026 historically aligns with the weaker phase of the four-year halving cycle. According to Van Eck, the current correction resembles a normal cycle reset.
Adoption metrics continue to rise, with crypto-linked payment cards reaching a record $7.8 billion in cumulative transaction volume. Monthly usage growth has surged 230% since May 2025.
Traditional finance remains active as well. Goldman Sachs recently raised its S&P 500 year-end target to 8,000, which could eventually benefit crypto markets.
In derivatives markets, some traders see potential upside. Ether shorts clustered near the $2,000 level could face a massive short squeeze worth nearly $2 billion if ETH reverses its current trend.
Conclusion
Overall, the current market session highlights why the narrative of “crypto down” dominates in the short term. ETF outflows, leveraged liquidations, geopolitical stress, and options expiry volatility have created a challenging environment for risk assets. However, institutional adoption, regulatory progress, and expanding real-world crypto usage continue to advance.
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