Bitcoin Sinks Below $65K: $360M Liquidations Shake Out Leveraged Longs

Bitcoin's brutal slide below $65,000 triggered a staggering $360 million in cryptocurrency liquidations over the past day, predominantly crushing leveraged long positions on BTC and altcoins. Sparked by President Trump's escalation of global tariffs to 15 percent following a Supreme Court ruling, this risk-off wave amplified the downturn, with fear gripping markets as the Crypto Fear and Greed Index hit an extreme low of 5. Traders watched helplessly as cascading forced sales deepened the pain.

The liquidation frenzy unfolded rapidly, with on-chain trackers like Whale Insider reporting $373 million in long positions wiped out in just four hours, aligning closely with the $360 million figure highlighted by analysts on platforms like Briefing Block. This came after BTC breached key support around $65,000, a level that acted as a magnet for overleveraged bets. Briefing Block noted macro triggers like rising DXY and bond yields post-tariff news as accelerants, turning a simple dip into a full-blown purge. Bullzdeep captured the chaos on X, describing ETFs bleeding outflows, whales dumping atop retail panic, and Fear & Greed plunging below COVID crash levels—echoed by Socrates Global's alert on $200 million in longs liquidated in 60 minutes alone. KuCoin's flash update confirmed the $360 million toll as Bitcoin hit lows near $64,400, underscoring weak liquidity amid broader market jitters. Invezz analysts pointed to geopolitics and macro risks exacerbating the sell-off, with alts like SOL and SUI facing similar bloodbaths despite long-term appeal. This isn't isolated; historical patterns show such events purge weak hands, as leveraged positions amplify volatility. Trump's tariff hike unsettled equities and crypto alike, with U.S. GDP slowing to 1.4 percent and sticky inflation at 2.9 percent complicating Fed rate cut hopes.

These liquidations ruthlessly eliminate overleveraged speculators, cleansing the market of weak positions and paving the way for stabilization and potential rebounds. For surviving traders, volatility spikes create prime entry points, though heightened swings demand tighter risk management. Ultimately, this shakeout reinforces resilience, rewarding those who weather the storm with discounted assets amid improving fundamentals.

While today's bloodbath stings, history proves liquidations like this signal bottoms where strong hands accumulate. Resilient traders eyeing DXY stabilization and tariff fallout could find the dip turning into a launchpad. Stay disciplined—fortune favors the bold in crypto's unforgiving arena.

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