Bitcoin Plunges Below $65K: Whales Fuel Rapid 5% Crash

Bitcoin's price executed a brutal takedown late Sunday, shedding over 5% in mere hours to breach the critical $65,000 support and flirt with $64,500 lows. This swift correction erased weekend gains and marked the cryptocurrency's first six consecutive negative weekly closes, a streak unseen in recent memory. Whale-sized deposits to exchanges lit the fuse, amplifying panic amid thin liquidity and macro headwinds like tariff threats.10

The descent unfolded with alarming speed, as Bitcoin failed to defend consolidation levels around $67,000 after bouncing from $60,000 support earlier in the week. Bitcoin Magazine detailed how large holders drove most inflows, with the exchange whale ratio spiking to 0.64—the highest since 2015—and average deposits climbing to 1.58 BTC per transaction.1 Trading volumes exploded during the drop, underscoring active distribution by savvy players unloading at losses to retail newcomers. CNBC pinned much of the blame on President Trump's tariff escalation to 15% globally, sparking a risk-off exodus from speculative assets. Investors rotated into safe havens like gold, which climbed over 1%, while Ether mirrored Bitcoin's pain with a 3.9% slide to $1,867. Experts like Jeff Mei of BTSE highlighted preemptive selling ahead of anticipated equity declines, compounded by U.S. geopolitical tensions in the Middle East.0 Sentiment plunged to extremes, with the Crypto Fear and Greed Index cratering to 5, its lowest since 2018, as noted in viral X posts from influencers like Crypto Rover. GrizMeta echoed historical patterns, observing that every major Bitcoin crash features retail panic while smart money accumulates. Yet counter-signals persist: institutions like Abu Dhabi's Mubadala boosted BlackRock's IBIT holdings to $630 million, and MicroStrategy added thousands more BTC despite unrealized losses.1 Analysts from 10x Research warn of further downside toward $50,000 if bearish momentum holds, citing weak liquidity and midterm election overhangs. Support at $64,000 now hangs by a thread, with over 136,000 traders liquidated in the melee.

This crash liquidated $458 million in positions, predominantly longs, fueling cascading sells and heightened volatility that crypto traders must navigate carefully. While extreme fear creates dip-buying setups for resilient holders, breaking key supports could invite deeper corrections to $60,000, pressuring leveraged plays and testing nerves across the board. Long-term, it underscores Bitcoin's sensitivity to macro shocks, rewarding those who weather the storm.

Traders should brace for choppy waters, monitoring whale flows and tariff fallout closely. History suggests extreme fear often precedes rebounds, but caution prevails until conviction returns. Position sizing and risk management remain paramount in this precarious phase.

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