Bitcoin fell below $71,000 on March 18, dropping 3.96% in a single session as a hotter-than-expected producer price index reading and looming Federal Reserve uncertainty triggered broad selling across crypto and equities.
Bitcoin Breaks Below $71,000 in a 3.96% Single-Day Drop
BTC slid to $70,990.20 on OKX, breaching the $71,000 level that had served as psychological support in recent sessions. The 3.96% daily decline wiped out earlier weekly gains and pushed the asset to its lowest point in days, according to PANews market data.
Trading volume surged to $46.99 billion over 24 hours as sellers accelerated. Bitcoin’s market capitalization fell to approximately $1.43 trillion, placing the asset roughly 44% below its all-time high of $126,080 set on October 6, 2025.
The damage extended beyond spot markets. Roughly $305 million in crypto contract liquidations hit the network over 24 hours, with long positions bearing the brunt of the flush. Overleveraged bulls who had positioned for a continued rally were caught offside as the price broke lower.
The selloff was not isolated to crypto. Coinbase stock fell more than 3.86% on the day, and major U.S. equity indexes closed lower in parallel, signaling a broad risk-off move across asset classes. For investors tracking exchange and crypto-adjacent equities, the correlation between COIN and BTC underscored how institutional exposure channels amplify directional moves.
Hot PPI Data and FOMC Uncertainty Fueled the Selling
The catalyst was macro, not crypto-native. U.S. producer prices surged 0.7% month-over-month, well above expectations, injecting volatility across risk assets. The hot PPI print forced traders to recalibrate expectations for Federal Reserve policy at the FOMC meeting scheduled for the same day.
The Fear & Greed Index dropped to 26, firmly in “Fear” territory, reflecting the sharp shift in market sentiment. Traders moved defensively as inflation data complicated the rate-cut narrative that had supported risk assets earlier in the quarter.
Bitcoin has historically struggled around FOMC meetings. The asset dropped after seven of eight Fed decisions in 2025, establishing a sell-the-news pattern that weighed on positioning heading into the March 18 announcement. That track record gave bears an additional edge as traders reduced exposure ahead of the rate decision.
The broader environment reflects a market recalibrating after months of optimism. While developments in tokenized securities and on-chain infrastructure continue to advance the crypto ecosystem structurally, short-term price action remains tethered to macro forces.
Key Price Levels to Monitor After the Break
With $71,000 broken, the next line of defense sits at the $70,000 round-number level. A sustained break below that threshold could open the door to a deeper correction toward $65,000, a zone that multiple analysts have flagged as a potential downside target if selling pressure persists.
To the upside, bulls need to reclaim and hold above $71,000 on a daily close to neutralize the bearish signal from this session’s breakdown. Failure to do so would confirm the level as new resistance rather than a temporary breach.
With roughly 20 million BTC of the 21 million maximum supply now in circulation, supply-side dynamics remain tight on a structural level. However, near-term price direction hinges on the FOMC outcome and whether the Fed’s statement signals any shift in its rate trajectory. Traders are watching for post-meeting volatility, given Bitcoin’s pattern of selling off after recent Fed decisions.
The combination of elevated liquidations, fearful sentiment, and unresolved macro uncertainty suggests that volatility will remain elevated in the sessions ahead. Whether $70,000 holds as support or gives way could define Bitcoin’s direction for the rest of March.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
