A sharp selloff in U.S. technology stocks rippled through global markets on Thursday, sending Microsoft shares down more than 11% and fueling renewed volatility across cryptocurrencies. As risk appetite deteriorated, Bitcoin slid to key technical support levels, triggering a wave of forced liquidations across crypto exchanges.
The move comes as macroeconomic pressures, geopolitical tensions, and record-breaking gains in precious metals push investors into a defensive stance.
Bitcoin tumbles as liquidations surge
Bitcoin fell sharply during early U.S. trading, wiping out heavily leveraged long positions. According to market data, roughly 270,000 trading accounts were liquidated over the past 24 hours, with total liquidations concentrated overwhelmingly in BTC and ETH long positions.
More than 90% of the liquidated contracts were longs, highlighting how crowded bullish positioning had become. As prices dropped rapidly, margin calls and stop-loss orders cascaded across exchanges, creating price gaps and amplifying volatility.
Tech selloff adds pressure to crypto markets
The downturn was exacerbated by weak earnings from Microsoft, which reported rising operating costs and slower growth in its cloud computing business. The results rattled investors and sparked a broader selloff across major technology stocks.
As equities declined, traders reduced exposure not only to stocks but also to cryptocurrencies, reinforcing Bitcoin’s downside momentum. Market participants described the move as a classic de-risking event rather than crypto-specific weakness.
Macro and geopolitical stress weigh on sentiment
Beyond earnings, geopolitical developments added to market unease. Heightened tensions in the Middle East, including reports of U.S. naval deployments, increased pressure on risk assets. Public statements from Donald Trump, along with renewed tariff-related concerns tied to oil-linked trade, further unsettled global markets.
These factors combined to create a risk-off environment, benefiting traditional safe havens while weighing on speculative assets.
Bitcoin tests key higher-timeframe support
Technically, Bitcoin is now trading near a higher-timeframe support zone that has held multiple times in recent months. Analysts note that while weekly closes remain within a broader range, continued macro stress could push BTC toward deeper support levels.
The broader crypto market also saw widespread losses, with multiple large-cap and mid-cap tokens posting sharp declines during the session.
Gold and silver surge as crypto lags
As crypto and equities struggled, gold and silver pushed to fresh record highs. Analyst Benjamin Cowen cautioned that Bitcoin may continue to underperform relative to stocks and precious metals in the near term, arguing that capital rotation back into crypto is unlikely to happen quickly.
Some market participants described the selloff as an overreaction, noting that prices have been trending lower since October. Others warned that if macroeconomic headwinds persist, the correction could extend further before a meaningful recovery takes hold.
Outlook
For now, Bitcoin remains caught between technical support and intensifying macro uncertainty. With equities under pressure, geopolitical risks rising, and precious metals attracting capital, traders are likely to remain cautious.
Whether Bitcoin can stabilize or whether the broader correction deepens will depend largely on how macro conditions evolve in the days ahead.
