Bitcoin underwent a significant drop, slipping below the $64,000 mark as leveraged positions were liquidated amid global market turbulence.
This downturn erased all the gains accumulated since the rally that followed US President Donald Trump’s election victory.
The value of $BTC plunged by up to 11% today, reaching $63,719 — its lowest point since October 2024. Over the past four months, Bitcoin has lost nearly half of its peak value. The sell-off extended beyond Bitcoin itself, impacting altcoins, cryptocurrency ETFs, and firms like Strategy that hold substantial amounts of $BTC on their balance sheets.
The market decline is largely fueled by escalating geopolitical tensions and a diminished appetite for risk worldwide. Since mid-January, this selling pressure intensified as funds closed leveraged positions and sold assets to cover investor withdrawals — creating a self-perpetuating cycle of liquidation.
Chris Newhouse from Ergonia highlighted widespread fear and uncertainty in the market. He noted that weak buying interest only exacerbated ETF outflows and forced liquidations further.
This scenario echoes the sharp correction seen in 2022 during the US Federal Reserve’s monetary tightening phase when crypto markets reacted negatively to reduced liquidity after pandemic-era stimulus measures ended.
Brokerage companies have also felt strain amid these conditions. Coinbase shares have dropped over 30% year-to-date while Gemini announced plans to cut up to 25% of its workforce along with scaling back operations across regions including the UK, EU, and Australia.
Tens of billions flowed into US spot Bitcoin ETFs throughout 2025 providing strong price support; however recent trends reversed this momentum. Bloomberg reports reveal roughly $2 billion exited Bitcoin ETFs just last month alone with total outflows surpassing $5 billion over three months.
The steep fall in Bitcoin’s price has caused even more severe losses among smaller tokens with lower liquidity. Defensive strategies are becoming apparent within options markets: demand for protection below $70K is rising while open interest clusters around futures contracts at levels near $60K or even as low as $20K for June expiry suggest growing pessimism among traders.
Ryan Rasmussen from Bitwise Asset Management explained that typical crypto bear markets conclude during phases marked by “disinterest,” but currently we are witnessing a “despair” phase dominated by bearish sentiment across markets.
Marex senior strategist Ilan Solot attributed selling pressure partly to weakness in tech stocks combined with gold’s relative strength alongside broader risk aversion trends globally. While short-term prospects appear bleak according to Solot’s analysis, historically such sharp declines often create attractive entry points for long-term investors seeking opportunities amidst volatility.
*This content does not constitute investment advice.*