Why Is the Cryptocurrency Market Facing Simultaneous Pressures While Bitcoin Retreats

The cryptocurrency market is under attack on multiple fronts. What began as a natural decline in Bitcoin has turned into a cascading liquidation now affecting the entire crypto ecosystem. Understanding the market we are facing at this moment is essential for any sector participant. Initial numbers paint a challenging picture. Bitcoin was traded at $65.64K, down 1.28% in the last 24 hours, while Ethereum retreated 0.60%. Solana fell 1.26% and XRP lost 0.43%, but the distribution of losses reveals something deeper than a simple price correction. This decline is not driven by a single headline but by the convergence of three pressures: accelerated deleveraging, risk aversion sentiment, and volatility in traditional markets. ## Leverage Exits the Market at an Accelerated Pace The current scenario shows that structural selling pressure has been building for weeks. Open interest in perpetual futures dropped about 4.4% just in the last day, eliminating roughly $26 billion in exposure. This shocking number gains scale when we look at the monthly trajectory: over the past 30 days, leverage has fallen 34%, indicating that traders have been systematically deleveraging, not just in reaction to today. What kind of market do we experience when leverage is being wiped out en masse? A fragile market prone to cascade reactions. As long positions are liquidated, they automatically turn into sell orders. Over 24 hours, approximately $237 million in long BTC positions were liquidated. Over the past week, this total reached $2.16 billion. In the last month, accumulated liquidations total more than $4.4 billion. ## Risk Aversion Sentiment Freezes the Market The pressure is not limited to cryptocurrencies alone. European stocks weakened, while concerns over tighter monetary policies amplified risk aversion across all assets. In this context, Bitcoin — which should serve as an anchor — has become an additional source of pressure. Nervousness around large Bitcoin holders has intensified fears. The Strategy Team, known for its significant positions, has an unrealized loss of nearly $900 million in Bitcoin. In such a fragile market, these signals trigger speculation about possible selling pressures, amplifying volatility. The contagion effect is immediate: with Bitcoin dominating derivatives trading, all price pressure transmits to altcoins as traders cut risks broadly. ## What Scenario Emerges for the Next Period Critical technical levels now define the immediate future. Bitcoin maintains a key support at $75,000. If it stays above this level, the market may find room to stabilize. A clear break below would focus attention on $70,000 as the next important support zone. For the cryptocurrency market to breathe again, two conditions are necessary: Bitcoin needs to stop falling, and the pace of liquidations must slow down. Until then, volatility will remain high, and any technical reaction will struggle to sustain itself. What we see today is the result of a process that has been building for weeks — not an isolated panic. The combination of structural deleveraging, unrealized losses on large positions, and adverse macroeconomic climate creates the perfect scenario for sharp movements. Relief will only be possible when these three pressures begin to dissipate, especially when Bitcoin finds its bottom and stabilizes above critical levels. Until then, the market will remain under intense scrutiny of every new price movement.