Hassan Maishera
TL;DR
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BTC briefly dropped below $65k on Sunday, losing nearly 4% of its value.
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The market conditions remain fragile, with nearly $500 million worth of leveraged positions wiped out from the market.
BTC Dips Below $65k as Altcoins Suffer Huge Losses
The cryptocurrency market was extremely bearish over the weekend as Bitcoin and other leading cryptocurrencies recorded massive losses.
Bitcoin lost nearly 4% of its value on Sunday and briefly dropped below the $65k level. At press time, Bitcoin is trading around the $65,800 level, with market conditions still extremely bearish.
The dip resulted in $488 million worth of leveraged positions being wiped out from the market. According to CoinGlass, $436 million of those positions were longs, with the remaining $52 million shorts.
Ether and other major cryptocurrencies also recorded sharp declines on Sunday. ETH is down 4% and trading below $1,900, while XRP, BNB, and SOL are down 3.5%, 3%, and 7%, respectively.
While commenting on the tip, Rachael Lucas, crypto analyst at BTC Markets, said,
"This is a confluence of macro shocks hitting a market that was already fragile. Geopolitical chaos out of Mexico is rattling risk appetite globally, and the worst pending home sales reading ever recorded in the U.S. has compounded the nervousness."
The fragile market conditions were intensified after President Donald Trump announced he would raise the blanket 10% tariff on all U.S. imports to 15%, a move he had originally announced after the Supreme Court ruled that his emergency tariffs were unlawful.
"Bitcoin was already carrying five consecutive weeks of ETF outflows and spot volumes down 59% week on week, so the liquidity conditions to absorb a shock like this simply were not there. This is not a bitcoin-specific story. It is a risk-off story that bitcoin is absorbing first," Lucas added.
Kronos Research CIO Vincent Liu added that Bitcoin could record further losses in the near term, with support likely to be found around the $60k zone.
"Watch $60K for support — On the upside, reclaiming $65–66K could stabilize BTC, with $70K signaling a rebound but highly dependent on macro flows. Relief could come from renewed ETF inflows, clearer regulatory signals, or Thursday’s initial jobless claims, which may provide insights or at minimum, a relief bounce," Lui added.
