Bitcoin experienced a sharp decline on Monday, briefly dropping below the $66,000 support level and triggering a massive wave of forced liquidations totaling $412 million within hours. This event contributed to a staggering $2.29 billion in total crypto liquidations over the preceding week, marking a volatile period for digital asset markets.
The price drop to as low as $65,505 on Friday specifically triggered a surge in long liquidations, with $171 million in BTC long positions being wiped out. This represented the highest daily long liquidation figure since February 23, indicating a significant unwinding of leveraged bullish bets. The cascade was initiated when Bitcoin broke below the $66,000 threshold, hitting a dense cluster of leveraged long positions and creating a feedback loop of selling pressure.
Institutional selling pressure was identified as a primary driver of the bearish move. Spot Bitcoin Exchange-Traded Funds (ETFs) recorded substantial net outflows, with $225.5 million exiting on Friday alone—the third-largest daily outflow for March. For the entire week, net ETF outflows reached approximately $296 million, exerting significant downward pressure on the BTC price.
Despite the sell-off, notable whale activity provided a counterbalance over the weekend. Large investors acquired Bitcoin worth $34.2 million across major exchanges like Binance, Coinbase, and OKX. Furthermore, whales executed nearly $2 billion in long positions on Binance and OKX futures, signaling a return of bullish sentiment among large holders and helping the price stabilize above $66,000.
Analysts point to a critical support zone between $63,500 and $65,500 as a key area for downside liquidity. The market remains in a state of elevated uncertainty, with Bitcoin's price action in March characterized by a failed attempt to break out of its consolidation pattern. Macroeconomic factors and geopolitical tensions are cited as continuing negative influences on price, suggesting that a de-escalation is needed for a sustained bullish reversal. At the time of reporting, Bitcoin was trading around $67,360.
