The cryptocurrency market experienced a sharp downturn as Bitcoin (BTC) broke below the key psychological support level of $65,000, triggering a wave of liquidations and dragging down major altcoins. Bitcoin's price fell nearly 5% to around $64,800 at its lowest point, with a rapid $2,500 drop occurring within an hour. This move resulted in an estimated $240 million in long liquidations across leveraged derivatives markets.
The selloff extended across the market, with the total digital asset market capitalization dropping roughly 4.4% in 24 hours to approximately $2.23 trillion. Ethereum (ETH) declined nearly 6% to trade around $1,859, while XRP fell nearly 6% on the day to near $1.33, reflecting a broader risk-off rotation away from altcoins. The total market cap is now hovering near a yearly low of $2.17 trillion set earlier in the month.
Analysts note that the downturn appears driven more by mounting macroeconomic pressures than crypto-specific news. Contributing factors include broader market uncertainty, profit-taking after recent gains, and reduced risk appetite among investors. The decline has also been accompanied by notable outflows from U.S. spot Bitcoin ETFs in recent sessions, raising questions about whether the strong institutional demand seen earlier in the year is losing momentum.
Traders are now closely watching the next support levels. The breach of the $65,000 level is viewed as a significant shift in short-term sentiment, with the potential to test lower consolidation zones if selling pressure continues. Market participants will monitor trading volume, macroeconomic developments, and institutional flows to determine if this breakdown represents a temporary correction or the beginning of a broader market adjustment.
