Bitcoin fell sharply from $67,600 to $64,435 in a two-hour span, triggering a wave of liquidations. Over $500 million in leveraged positions were wiped out, with Bitcoin and Ethereum accounting for nearly 70% of the total. Analysts linked the selloff to macroeconomic policy uncertainty and geopolitical tensions, noting crypto remains a high-risk asset class.
Bitcoin’s sharp pullback triggered over $500 million in liquidated leveraged positions across crypto markets. The leading cryptocurrency fell roughly 4.6% during early Asian trading, according to CoinGlass data, with Bitcoin positions accounting for $232 million and Ethereum for $126 million.
Analyst Tim Sun, senior researcher at HashKey Group, stated the downturn was driven by policy uncertainty and geopolitical risks forcing a repricing of risk assets. He pointed to factors including sticky inflation data, Middle East tensions affecting oil prices, and shifting interest rate expectations.
Markets have repriced rate-cut expectations, with tools like the FedWatch tool showing a high likelihood rates remain unchanged. On prediction market Myriad, users now place just a 21% chance on a rate cut of more than 25 basis points before July.
Sun explained that “assets with high volatility and high liquidity dependence were the first to face pressure.” He noted crypto assets remain “firmly anchored at the far end of the risk curve” for institutional capital.
The analyst expects limited capital inflows and a protracted bottoming process due to increased uncertainty. He cautioned that any bounces are more likely to be technical recoveries without sustained macro support.
