Bitcoin took a sharp hit this week as a broader selloff in technology stocks rattled global markets, sending traders scrambling for safety. The downturn followed a steep drop in Microsoft shares, which plunged about 11% after the company reported earnings that highlighted rising costs and slower growth in its cloud business. The weak results weighed heavily on investor confidence and added pressure to already shaky risk assets — including cryptocurrencies.
During early U.S. trading, Bitcoin slid more than 6%, triggering a wave of forced liquidations across major crypto exchanges. Data from crypto.news shows that roughly 270,000 trading accounts were liquidated in the past 24 hours alone. The vast majority of those wiped-out positions — over 90% — were long bets, mainly tied to Bitcoin and Ether.
As prices fell quickly, margin calls and stop-loss orders were triggered almost simultaneously, accelerating the drop. Traders reported increased volatility and even brief price gaps on some exchanges, a sign of how fast the market moved as leverage was flushed out.
The crypto selloff didn’t happen in isolation. Rising geopolitical tensions in the Middle East added to the risk-off mood. Market participants pointed to the deployment of a U.S. warship in the region and recent public comments from U.S. President Donald Trump as factors increasing uncertainty. Additional worries emerged after an executive action related to tariffs on goods linked to certain oil transactions, further unsettling global markets.
At the same time, traditional safe havens have been attracting strong inflows. Gold and silver both climbed to fresh record highs, according to Trading Economics, reinforcing the idea that investors are seeking stability rather than speculative growth. This shift has left assets like Bitcoin vulnerable during periods of macro stress.
From a technical perspective, analysts say Bitcoin is now trading close to an important higher-timeframe support zone that has held for several months. Weekly price closes have remained within a defined range, suggesting the market is testing the lower end of that structure. Whether this level holds could shape near-term sentiment.
Analyst Benjamin Cowen noted that Bitcoin may continue to lag behind stocks for now, arguing that a rapid rotation from precious metals back into crypto is unlikely. While some market watchers believe the reaction has been overdone — pointing out that prices have been trending lower since October — others are more cautious.
Several analysts warned that if macroeconomic pressures persist, including geopolitical risks and weakness in major tech stocks, the correction could extend further. The broader crypto market also suffered during the downturn, with many tokens posting significant losses alongside Bitcoin.
For now, traders are watching key support levels closely, while keeping an eye on global headlines. With tech stocks wobbling, leverage cleared out, and safe havens shining, Bitcoin’s next move may depend less on crypto-specific news and more on how the wider financial landscape unfolds.
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