Bitcoin Falls Below $63K as Liquidations Top $500M
Bitcoin was rejected near $66,000 and then dumped below $63,000, extending a move that started after a steadier weekend around $64,000. The drop accelerated as over-leveraged positions were forced out: total liquidations reached roughly $530M on the daily chart (about $170M in the last hour), wiping out nearly 120,000 traders. Long liquidations dominated, with BTC and ETH leading ($170M and $96.5M respectively).
The article cites several drivers behind today’s selloff. ETF outflows reportedly continued, with another ~$68M withdrawn from Bitcoin funds on Monday. It also points to a strengthening US dollar as a headwind for Bitcoin, alongside rising market FUD over “OG investors” selling. Additional bearish noise included concerns tied to Strategy (STRC) and its dividend coverage, with claims the firm may need to sell BTC and that its BTC purchases have slowed while it rebuilds USD reserves.
On the macro/tech narrative side, an executive order advancing quantum computing R&D was framed as a potential long-term threat to crypto. Separately, Strategy/FUD around STRC shares added to risk sentiment.
Altcoins broadly followed. ETH lost the $1,700 support after a ~2.5% daily decline. XRP tested $1.10 again after rejecting near $1.15. SOL fell nearly 5% to around $70.
Bearish
The selloff is clearly driven by forced deleveraging: liquidations above $500M and ~120,000 traders wiped out typically intensify downside momentum in the short term. With longs dominant (especially BTC and ETH), there’s a higher chance of additional stop-outs before price finds stabilization.
Fundamental/flow factors also skew bearish. Continued Bitcoin ETF outflows (~$68M) remove a potential source of demand, while a strengthening US dollar has historically pressured USD-priced crypto assets. The Strategy/STRC dividend-coverage narrative and “possible BTC selling soon” claims add a secondary supply worry, reinforcing risk-off behavior.
Historically, sharp liquidation waves after a failed breakout (here, rejection near $66K followed by loss of $63K) often lead to: (1) short-term volatility and mean-reversion attempts, but (2) sustained weakness until flows improve and leverage resets. Longer-term, the quantum-computing headline is more sentiment than immediate fundamentals, so its impact is likely smaller than the near-term ETF/FX/positioning effects.