Bitcoin Slides Below $65K as Macro Turmoil Sparks $360M Liquidation Wave

Crypto markets were jolted Sunday evening as Bitcoin and other major digital assets plunged sharply, triggering a cascade of forced liquidations across derivatives exchanges.

Bitcoin dropped swiftly from roughly $67,600 to near $64,700, shedding more than 4% in under two hours. The abrupt move rattled traders and exposed the market’s fragile liquidity conditions.

The sell-off extended beyond Bitcoin. Ethereum fell nearly 6% to around $1,861, XRP slid over 6% to $1.33, and Solana sank more than 8% to approximately $77.60. The synchronized drop underscored the broad risk-off sentiment sweeping through digital assets.

Liquidations Accelerate the Decline

As prices fell, leveraged long positions were rapidly unwound. Within a single hour, nearly $360 million in bullish bets were liquidated, amplifying downside momentum and deepening losses across exchanges. Thin liquidity and elevated leverage made the market particularly vulnerable to sudden shocks.

Macro Pressures Mount

The crypto retreat coincided with heightened geopolitical and economic uncertainty.

In Mexico, security forces killed Nemesio “El Mencho” Oseguera, leader of a powerful cartel, sparking widespread unrest and prompting several international airlines to suspend flights to the country. The violence contributed to a broader pullback in global risk appetite.

Meanwhile, U.S. housing data added to investor anxiety. Pending home sales for January fell 0.8%, marking the lowest reading since tracking began in 2001—another signal of economic strain.

Adding to market unease, Donald Trump announced plans to increase blanket U.S. import tariffs from 10% to 15%. The move followed a court ruling that previously challenged the legality of emergency tariffs, injecting fresh uncertainty into trade policy. U.S. futures and the dollar weakened in response.

At the same time, the Japanese yen surged on speculation that the Bank of Japan may tighten monetary policy further. The currency spike pressured global funds to deleverage, intensifying selling across risk assets, including crypto.

Fragile Market Structure

The downturn struck a market already under strain. Bitcoin had logged five consecutive weeks of ETF outflows, while spot trading volumes were down sharply week-over-week. With reduced liquidity and diminished institutional participation, the market lacked the depth to cushion a macro-driven shock.

Despite the turbulence, some on-chain signals paint a more nuanced picture. Large holders have reportedly accumulated roughly 200,000 BTC over the past month, suggesting strategic buying beneath the surface volatility. Additionally, Bitcoin’s short-term risk-adjusted performance metrics have reached levels historically associated with cycle bottoms.

Key Levels to Watch

Traders are now eyeing the $60,000 level as a potential support zone. A sustained move back above the $65,000–$66,000 range could help stabilize sentiment, while reclaiming $70,000 would signal stronger recovery momentum—though much depends on broader macro flows.

Potential catalysts for relief include renewed ETF inflows, clearer regulatory progress such as movement on the CLARITY Act in the Senate, or upcoming U.S. labor market data that could ease fears of economic deterioration.

For now, the sell-off appears less about crypto-specific weakness and more about global markets repositioning amid rising uncertainty. In a fragile environment, Bitcoin remains the first asset to absorb the shock.