Bitcoin Near $70K as Liquidations and Fed Risk Weigh

Bitcoin has lost some momentum after climbing above $74,000 earlier in the week, with the market now drifting back toward the $70,000 area as macro pressure builds. BTCUSD is trading near 70,699, down 504 points or 0.71%, after falling more than 5% over the past 24 hours. The move reflects a broader cooling in risk appetite as traders adjust to a tougher interest rate backdrop and a less supportive liquidity environment.

A major part of the pressure is coming from the Federal Reserve. Stronger-than-expected U.S. inflation data, including core PPI at 3.9% year-on-year, has reinforced the view that inflation remains sticky.

At the same time, Fed Chair Jerome Powell signalled that it is still too early to be confident that inflation is fully under control. With headline PCE at 2.8% and core PCE at 3.0%, both still above the Fed’s 2% target, markets are becoming more cautious about how quickly rate cuts may arrive. That matters for Bitcoin because tighter policy tends to reduce liquidity and weigh more heavily on speculative assets.

The move lower was then amplified by forced selling across the crypto market. More than $382 million in long liquidations were recorded over 24 hours, with Bitcoin and Ethereum each accounting for more than $150 million. When leveraged long positions are unwound quickly, price declines can accelerate as traders are forced out of the market. That added to downside pressure and helped drag the wider crypto market lower, although total market capitalisation has so far stabilised above $2.5 trillion, suggesting the broader market has not yet moved into a more severe breakdown.

From a technical perspective, the $70,000 level remains the key area holding the structure together in the near term. Bitcoin is trading between important moving averages, with the 5-day moving average at 72,469 and the 10-day at 71,549 sitting above current price and acting as near-term resistance.

Discover why Bitcoin’s latest pullback could be a pause for support or the start of a bigger correction in this article.