Bitcoin fell to a multi-month low near $65,000 on Wednesday, down about 8% from Tuesday's high near $71,300, triggering more than $1.8 billion in liquidations across leveraged crypto positions. CryptoQuant Head of Research Julio Moreno attributed the drop to contracting Bitcoin demand at a monthly pace of 232,000 BTC, though other analysts disputed this view. The single-day flush marked one of the year's largest derivatives wipeouts, with long positions accounting for roughly $1.5 billion of the total liquidations against $180 million in shorts.
Liquidation Breakdown Across Major Cryptocurrencies
CoinGlass data revealed that Bitcoin long liquidations totaled $774 million, while Ether longs accounted for approximately $440 million and Solana longs reached roughly $91 million. More than 224,500 traders were liquidated across the market. The price drop brought Bitcoin to a roughly four-month low, with long-position holders bearing the brunt of the derivatives flush.
Analysts Dispute Cause of Bitcoin Price Drop
CryptoQuant Head of Research Julio Moreno stated the price correction is "completely related to Bitcoin demand conditions and has nothing to do with stocks, oil, or macro data." Moreno cited overall demand for Bitcoin contracting at a monthly pace of 232,000 BTC. Analyst Lark Davis identified six contributing factors, characterizing Bitcoin's four-year market cycle as the primary one. Analyst Ted Pillows warned that a break below the $65,000 support could open the door to fresh lows.
MicroStrategy Sale Draws Retail Attention
Retail traders focused on Michael Saylor's disclosed sale of 32 BTC from MicroStrategy's holdings of more than 840,000 BTC. Though numerically minor, the sale was treated as symbolically significant by market participants.
FAQ
What caused Bitcoin to drop to $65,000 on Wednesday?
CryptoQuant Head of Research Julio Moreno attributed the drop to contracting Bitcoin demand at a monthly pace of 232,000 BTC, stating the correction is "completely related to Bitcoin demand conditions." Other analysts disputed this view, with Lark Davis citing six factors including Bitcoin's four-year market cycle as primary, while Ted Pillows warned of potential further declines below $65,000 support.
How much was liquidated in the crypto market during Bitcoin's price drop?
More than $1.8 billion in leveraged crypto positions were liquidated, with long positions accounting for roughly $1.5 billion against $180 million in shorts. Bitcoin longs bore $774 million in liquidations, Ether longs approximately $440 million, and Solana longs roughly $91 million, affecting over 224,500 traders across the market.
