The dynamic deterioration of sentiment on global markets translated into a sharp decline in digital assets, pushing Bitcoin below the key level of USD 65,000. The scale of forced liquidations reached a record USD 2,000,000,000, which caused a domino effect on the quotations of Ethereum and the most popular altcoins.
Hemorrhaging in the futures market
The last 24 hours have brought a painful reminder to cryptocurrency investors about the risks associated with high financial leverage. The sharp drop in prices triggered a cascade of liquidations whose total value exceeded USD 2,000,000,000. Market data shows that the vast majority of these losses concerned long positions, i.e. bets on further price increases. The scale of this phenomenon is one of the largest in recent years, which proves the high degree of market leverage near recent peaks.
Analysts suggest that such drastic variability was the result of a combination of several unfavorable factors. On the one hand, we are dealing with capital outflows from ETF funds, and on the other, with a general escape from risk on traditional stock exchanges. As Bitcoin broke through support levels, automated sell orders began to dominate the order books, which only deepened the downward spiral.
Bitcoin at 15-month lows
The world’s main cryptocurrency, Bitcoin, fell below the USD 65,000 barrier, which is its lowest level since the end of 2024. Not long ago, investors were looking hopefully towards a historic peak, but the current correction has brutally verified these expectations. Since the peak reached a few months ago, the value of Bitcoin has fallen by approximately 50 percent, which puts crypto in the role of one of the weakest asset classes at the beginning of 2026.
The technical situation on the Bitcoin chart is currently looking challenging as the price is trading below key moving averages. Market experts point out that until Bitcoin regains levels above $75,000, any rebound can only be treated as a short-term correction in the downtrend. Supply pressure is especially visible during trading hours during the American session, which is associated with the massive distribution of units by exchange-traded funds.
Expert comment on this matter
Bitcoin’s price dropped dramatically, testing the psychological barrier of $65,000 and temporarily dropping even to around $60,000 overnight. This is the result of a combination of political disappointments in the US, a collapse in the technology sector and a huge wave of liquidations on the stock exchanges. Jakub Bartoszek, cryptocurrency market expert and CEO of Cashify, comments on the situation.
The strategic reserve is in doubt
The main driver of the recent declines is the clash of heated expectations towards the US administration with bureaucratic reality. Despite President Trump’s regulations, Treasury Secretary Scott Bessent’s speech before Congress had an impact on the market like a cold shower. The admission that the ministry does not have the authority to immediately force the purchase of cryptocurrencies by banks caused a flight of speculative capital.
Investors were counting on an immediate demand impulse from the state, but Treasury Secretary Scott Bessent’s speech before Congress acted like a cold shower. What we see on the chart is primarily the effect of aggressive leverage reduction in derivatives markets. We are dealing with classic ‘de-leveraging’ – the painful removal of excessive risk from the market. The cascading liquidation of long positions, which has reached billions of dollars in recent days, forced selling pressure that even demand from ETFs could not contain.
– explains Jakub Bartoszek, CEO of Cashify.
Bitcoin in the shadow of “Tech Rout” and recession fears
The expert points out that in 2026, Bitcoin’s correlation with the technology sector is stronger than ever. The problems of giants such as Nvidia or Alphabet, resulting from questions about the profitability of investments in AI, directly affect the valuation of cryptocurrencies.
We are observing a classic escape from risk (Risk-Off). Bitcoin is behaving like a leveraged Nasdaq index today. As capital flows away from technology stocks and towards value companies, digital assets are bound to suffer as well. Additionally, disastrous data from the American labor market – the highest number of layoffs since 2009 – intensify the fear of recession. In such conditions, cryptocurrencies, as the most liquid assets, are sold first in order to save capital
– adds Bartoszek.
Technical Destruction Landscape: ETFs and Liquidations
The scale of the discount was deepened by technical mechanisms that had a domino effect.
- Massive liquidations – in recent days, over USD 1.7 billion has disappeared from the market in the so-called long positions (longs). This forced automatic sales, deepening the declines.
- Outflows from ETFs – American spot funds recorded record outflows exceeding USD 1.3 billion in a week. Institutions that bought BTC in 2025 began to aggressively take profits.
What’s next?
According to Jakub Bartoszek, maintaining a wide support zone around USD 60,000-65,000 will be key to maintaining the structure of the bull market.
We are in the phase of searching for a new balance point. Permanent descent below the 70,000 barrier. USD changed the short-term sentiment, and the overnight test of around 60,000. The USD showed how much selling pressure had accumulated in the market. For the first time in months, we are testing levels that must confirm their strength as a foundation for further increases. If the current correction manages to slow down around 60-65 thousand. USD and will permanently clear the market of ‘hot capital’. we will be able to talk about a healthy stop before the further boom. At the moment, however, this is a painful test of credibility for the entire sector
– summarizes Jakub Bartoszek.
