Only the Mac has the bulk delete feature where you can select a range of blocked contacts to remove all at once, while the iPhone/iPad only have the single delete option. If you have a Mac, you can bulk delete there and they will sync to any iPhone/iPad that uses the same Apple Account. If you would like to send Feedback to Apple for a feature request to add the same bulk delete option that is on the Mac to the iPhone, then that can be done here.
Feedback - iPhone - Apple
You are going to want to get your blocked contacts below 3,000 before you will be able to block additional contacts. If you are using blocking as a form of Spam control, that is not effective since spammers just spoof the sending number/email and it would not be likely that you would even receive further communication from that same number anyways. The only really effective usage of blocking is for when you want to block a known contact, such as a family member or friend where you may just need a temporary break. Another time that may help is when you are receiving multiple communication from the exact same contact, maybe from a previously subscribed mailing list, but in either case it is not likely that there would be over 3,000 of them.
To effectively block spam calls, you should be using Call Screening and I recommend using the Ask Reason for Call option. That way a caller that is not in your Contacts, or previously marked as a known caller, will be asked their name and reason for call before your phone will ring. Spammers are not doing that so you will no longer get those calls, but calls from a doctor or other important contact would have no problem providing that information and your phone will ring like normal.