Bitcoin's price has plummeted to a six-week low of approximately $85,000, triggering a broad market sell-off and a massive wave of leveraged position liquidations. Data from CoinGlass reveals that over $650 million in leveraged positions were liquidated in a single day, with roughly half of that total—about $328 million—wiped out in just the past hour. The single largest liquidated position occurred on the Hyperliquid exchange, valued at over $31 million.
The immediate catalyst for the sell-off appears to be escalating geopolitical fears. Reports indicate the U.S. President has deployed the Abraham Lincoln Carrier Strike Group to the Middle East, warning Iran that its time to make a deal is "running out." This has sparked fears of a potential military strike, causing traditional safe-haven assets to behave erratically. While U.S. crude oil jumped over 2.5%, gold slumped dramatically from an all-time high above $5,500 per ounce to $5,300 within minutes.
The crypto market downturn was widespread. Bitcoin (BTC) fell over 4% in 24 hours, breaking below the $86,000 support level. Altcoins followed suit, with Ethereum (ETH) dropping to around $2,800 after being rejected at $3,000. XRP slumped 3.5%, Solana (SOL) fell 3.7%, and Cardano (ADA) declined to approximately $0.33. The total cryptocurrency market capitalization fell nearly 4% to around $2.89 trillion.
On-chain data from Glassnode adds further context, showing that long-term Bitcoin holders have been distributing significant amounts of BTC. Over the past 30 days, they have spent an average of more than 12,000 BTC daily, equivalent to roughly 370,000 BTC per month. This sustained selling pressure from historically dormant wallets is contributing to the market's weakness.
Market participants are now closely watching a pivotal regulatory event. The U.S. Senate is set to vote today on the Crypto Market Structure Bill, which could provide much-needed regulatory clarity and potentially unlock institutional capital. The outcome of this vote is expected to play a critical role in shaping near-term market sentiment as Bitcoin tests key support levels.