Bitcoin Drops Below $65K as Liquidity, Derivatives Liquidations and Macro Pressure Intensify
Bitcoin fell below the key $65,000 support in early April 2025, trading near $64,900 on Binance USDT perpetual futures after a rise in sell pressure. The move coincided with higher spot and derivatives volumes, roughly $450 million of leveraged long liquidations within 24 hours, and modest net outflows (~$85m) from U.S. Bitcoin ETFs. On-chain flows showed increased transfers to exchanges and a dip in short-term profitability (SOPR), while long-term supply remained largely dormant and miners’ hash rate stayed near all-time highs. Macro factors — a softer S&P 500 futures session and a slight DXY rally in one report, and in other coverage broader liquidity and Treasury/Fed balance-sheet dynamics — added pressure. Technicals now point traders to support in the $60,000–$62,000 zone and the 50-day MA (~$64k) as near-term levels to watch. Derivatives reacted with funding rates normalizing or turning negative and higher put demand (notably strikes at $60k–$64k), increasing short-term downside and liquidation risk. The decline (about 7–9% from recent highs near $70k–72k) fits within historical mid-cycle corrections rather than a structural bear reversal. Traders should monitor BTC reclaiming $65k–$66k, exchange flows, funding rates, open interest, option skew, BTC dominance, and incoming U.S. macro data or Fed commentary for near-term signals. Core long-term fundamentals (ETF adoption, network hash rate, dormant long-term supply) suggest this is more likely a correction than a trend reversal.
Neutral
The combined reports point to a short-term negative price reaction for BTC driven by concentrated sell pressure, significant leveraged long liquidations (~$450m), higher exchange inflows and modest ETF outflows — all of which increase volatility and downside risk in the near term. Derivatives signals (funding turning neutral/negative, higher put demand and option skew) reinforce a bearish short-term bias and heightened liquidation risk for highly leveraged traders. However, multiple structural indicators limit the case for a sustained downtrend: the drawdown (7–9%) is within typical mid-cycle correction ranges; long-term supply remains largely dormant; miners’ hash rate is near all-time highs; and ETF adoption and other fundamentals remain supportive. Therefore the immediate price impact is negative/neutral, while the broader structural outlook remains intact, suggesting this episode is a correction rather than a trend reversal. Traders should expect elevated volatility and watch reclaim levels (65k–66k), funding, open interest and exchange flows for clues on a follow-through move.