The cryptocurrency market is under pressure. The overall market capitalization has slipped roughly 3.5%, now hovering near $2.25 trillion. Bitcoin has declined more than 3%, trading close to $65,549 after briefly falling even lower. Ethereum is down 5%, BNB has lost 3.7%, Solana has dropped 7%, and XRP is lower by about 4%.
This isn’t just another routine red day. Multiple factors hit the market at the same time.
The initial catalyst came from macroeconomic developments. President Donald Trump revealed plans to increase global tariffs from 10% to 15%, pointing to balance-of-payments issues. The announcement revived fears of a potential trade war and triggered a swift risk-off response across financial markets.
Following the news, Bitcoin quickly sold off. According to Crypto Patel, BTC slipped below $65,000 shortly after the announcement, with nearly $461 million in liquidations across the crypto market and more than 134,000 traders wiped out—most of them holding long positions.
Crypto tends to behave like a high-risk asset during periods of macro uncertainty, and that dynamic played out again here.
The sell-off extended beyond the initial headlines. Data from Santiment showed Bitcoin plunging 4.5% within just two hours, touching around $64.2K for the first time since early February. Open interest has dropped significantly to approximately $19.5 billion—less than half of its 2026 peak of $38.3 billion.
Within 24 hours, over $210 million in Bitcoin positions were liquidated, with longs accounting for the majority. The forced unwinding of leveraged positions added additional downward pressure, pushing prices lower than they might have otherwise gone.
Crypto Patel further noted that $193 million in BTC liquidations occurred in only four hours, including a single $61.5 million position on HTX. When leverage begins to unwind rapidly, price movements can accelerate sharply.
At the same time, market sentiment deteriorated quickly. Santiment highlighted that negative sentiment surged to a two-week high, even though the decline occurred late Sunday night in the U.S.—typically a quiet period for social media activity. The Fear & Greed Index has now moved into “Extreme Fear” territory.
Bull Theory offered a broader perspective, pointing out that Bitcoin is currently down around 49% from its peak, erasing more than $1.2 trillion in market capitalization over 139 days. It marks the first instance in BTC’s history where such a large dollar decline has occurred without a meaningful relief rally. This has led many traders to question whether structural changes have taken place since the October 10 liquidation event.
What Comes Next?
Bitcoin has now lost the $65K support level, increasing short-term pressure. The combination of tariff concerns, heavy liquidations, and extreme fear has fueled a sharp market-wide pullback.
However, historically, intense fear and large liquidation events have sometimes signaled short-term bottoms. Santiment observed that when retail sentiment shifts heavily toward fear, rebounds can follow.
For now, the market remains focused on macro uncertainty and the clearing out of excess leverage. The next directional move will likely depend on whether panic subsides and whether Bitcoin can reclaim the $65K–$66K range in the days ahead.
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