Bitcoin extended its losses over the past 24 hours, falling more than 3% and slipping below the $67,000 mark for the first time since March 9. The move triggered a wave of forced selling, with over $50 million in long liquidations recorded within an hour, according to Coinglass—around 70% of which came from bitcoin positions.
The decline also weighed on crypto-linked equities in pre-market trading, with shares of companies such as Circle Internet (CRCL), Coinbase (COIN) and Strategy (MSTR) moving lower.
Liquidations occur when leveraged traders betting on higher prices are forced out of positions due to insufficient collateral. The latest sell-off suggests bullish positioning had built up, leaving the market vulnerable to a sharp flush lower.
Derivatives data points to the risk of further downside. A 48-hour liquidation heatmap—used to identify price levels with concentrated liquidation risk—shows a significant liquidity cluster just below $66,000, indicating that bitcoin could be pulled lower in the near term if selling pressure persists.
Sentiment across futures markets is also turning more cautious. Funding rates have flipped negative, meaning short sellers are paying longs, a signal that bearish positioning is gaining traction.
At the same time, the macro backdrop is becoming increasingly challenging. The U.S. 10-year Treasury yield is approaching 4.5%, its highest level in nearly a year, reducing the appeal of risk assets such as cryptocurrencies.
Volatility in bond markets is also rising, with the MOVE index jumping 18% over the past day, reflecting heightened uncertainty around interest rates and inflation.
Energy markets are adding to the pressure. Oil prices, including Brent and WTI crude, have climbed roughly 3% as Ukraine’s disruption of Russian supply complicates efforts by U.S. President Donald Trump to stabilize global output.
Meanwhile, the U.S. dollar continues to strengthen, with the DXY index pushing toward the 100 level, creating additional headwinds for bitcoin and the broader crypto market.
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