Bitcoin Plunges to $65,000 as $1.8 Billion in Crypto Positions Are Liquidated

Bitcoin tumbled to a multi-month low near US$65,000 (AU$100,750) on Wednesday, triggering a derivatives wipeout that erased more than US$1.8 billion (AU$2.79 billion) in leveraged crypto positions and drew warnings of a deeper correction.

The drop marked an extraordinary single-day flush, with Bitcoin shedding about 8% from Tuesday’s high near US$71,300 (AU$110K) to a roughly four-month low. 

CoinGlass data revealed that long-position liquidations accounted for about US$1.5 billion (AU$2.33 billion) of the total, against roughly US$180 million (AU$279 million) in short liquidations.

Bitcoin longs bore the brunt, with US$774 million (AU$1.2 billion) wiped out, while Ether longs followed at about US$440 million (AU$682 million) and Solana longs at roughly US$91 million (AU$141 million). 

More than 224,500 traders were liquidated across the market.

Read more: GTA 6 Hype Fuels Surge in Phishing Scams and Malware Campaigns

Analysts Split on the Cause

As a surprise to no one, market analysts disagreed over what drove the rout. CryptoQuant Head of Research Julio Moreno stated: “The ongoing price correction is completely related to Bitcoin demand conditions and has nothing to do with stocks, oil, or macro data.”

Analyst Lark Davis identified six contributing factors, characterising Bitcoin’s four-year market cycle as the primary one, while analyst Ted Pillows warned that a break below the US$65,000 (AU$100.7K) support could open the door to fresh lows.

Retail traders fixated on Michael Saylor’s disclosed sale of 32 BTC from MicroStrategy’s holdings of more than 840,000 BTC. Though numerically minor, the sale was treated as symbolically significant.

Read more: Kelp DAO Hacker Launders US$220M in Stolen Crypto, Recovery Prospects Fade 

The post Bitcoin Plunges to $65,000 as $1.8 Billion in Crypto Positions Are Liquidated appeared first on Crypto News Australia.