Bitcoin fell another 2% in 24 hours, dropping below $68,000 for the first time in four days. The decline sparked more than $50 million in long liquidations in the past hour, according to Coinglass, of which roughly 70% came from bitcoin positions alone.

The decline sent shares of crypto-related companies such as Circle Internet (CRCL), Coinbase (COIN), and Strategy (MSTR), the largest public holder of Bitcoin, lower in pre-market activity.

Traders with long positions are betting prices will rise. Liquidations occur when an exchange forcibly closes a leveraged trade because the trader no longer has enough collateral, known as margin, to support the position.

A look at the 48-hour liquidation heatmap, a tool that highlights price levels where large clusters of forced liquidations may occur, shows significant liquidity below $66,000, which signals further downside for bitcoin is possible in the short term.

In another sign of bearish sentiment, funding rates are also negative. Funding rates are periodic payments between traders in perpetual futures contracts, which are derivatives that track an asset’s price without expiry. When negative, short traders, those betting on price declines, pay long traders.

Macro conditions are deteriorating further as the Middle East conflict progresses. The 10-year U.S. Treasury yield, a benchmark interest rate for government debt, is nearing 4.5%, its highest since July, making risk assets like crypto less attractive.

The MOVE index, which measures U.S. bond market volatility, has risen 18% over the past 24 hours, indicating increased uncertainty.

Meanwhile, oil prices, including Brent and WTI crude, are up 3% as Ukraine's disruption of Russian oil flows disrupts President Donald Trump's plans to ease supplies.

The DXY index, which tracks the strength of the dollar against a basket of major trading partners, is rising toward 100, creating further headwinds for risk assets.