- Bitcoin’s price fell below $68,000 for the first time in nearly two months.
- The crypto market recorded a massive $326 million in liquidation in one hour.
- Multiple factors contributed to Tuesday’s Bitcoin liquidations amid growing FUD.
Bitcoin experienced a significant decline on Tuesday, with the price falling below $68,000 for the first time since the first week of April. The drop reflects a continuation of the cryptocurrency’s pullback since reaching the $82,000 threshold at the beginning of May.
$326 Million Liquidated in One Hour
Market data reveals that total cryptocurrency liquidations over the past hour reached $326 million across major exchanges, with $1.67 million of Bitcoin futures constituting part of that liquidation. CoinGlass data shows that $7.55 million in Bitcoin long positions were wiped out in the past hour, while $2.66 million of short positions were liquidated during the same period.
It is worth noting that the referenced liquidations are part of a broader wipeout in the past 24 hours, when over $753.87 million in total crypto futures positions have been liquidated following Bitcoin’s drop below key psychological levels, particularly the $70,000 threshold. On-chain data shows that the single largest liquidation so far in the day happened on Binance for a BTCUSDT position valued at $23.99 million.
Key Drivers Behind Bitcoin’s Selloff
In the meantime, crypto market watchers have identified the key drivers behind the ongoing Bitcoin liquidation to include Strategy’s symbolic token sale, aggressive ETF capital outflows, Mt. Gox wallet movement, and geopolitical “risk-off” environment.
According to reports, Strategy revealed in a SEC filing that it sold 32 Bitcoins, worth roughly $2.5 million, to fund stakeholder dividends. Despite the relatively small volume of the sale, it is the first time the company has sold part of its Bitcoin holdings in over three years, unsettling retail investors who rely on the firm’s strict “buy-and-hold” market posture.
Spot Bitcoin ETFs entered an 11-day consecutive selloff streak, with over $3.4 billion leaving the ecosystem. BlackRock’s IBIT alone was responsible for a notable $440 million single-day outflow, further increasing the existing FUD in the cryptocurrency market.
Meanwhile, Blockchain trackers identified the transfer of 10,422 BTC, equivalent to approximately $739 million, from the defunct Mt.Gox exchange cold wallet to a hot wallet. It is an unexpected move that has renewed fears that creditors may be preparing to liquidate assets with a massive sell volume.
Adding to the bear market drivers is the official breakdown of the Middle East peace talks between the US and Iran, which has triggered defensive positioning across global financial networks. Although mainstream assets are experiencing a mixed session cushioned by a booming AI market rally, Bitcoin appears to be bearing the brunt of the ongoing global risk aversion.
What’s Next for Bitcoin?
The latest pullback leaves Bitcoin traders in a zone of uncertainty, with investors stuck between buying the dip and expecting further price decline. The cryptocurrency’s behavior around $65,00 will significantly influence traders’ decisions. A bounce around this region could attract a capital influx from bulls looking to take advantage of a potential reversal, while a confirmed break below support could open the way for BTC to retest its yearly low around $60,000.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
