Bitcoin fell below $65,000 Sunday, erasing more than 4% in under two hours. The abrupt move triggered roughly $360 million in long liquidations within a single hour, amplifying volatility across major tokens.
At around 7:20 p.m. ET, bitcoin dropped from $67,600 to near $64,700, according to price data. Ether slid 5.77% to $1,861, XRP declined 6.42% to $1.33, and Solana fell 8.3% to $77.60 over 24 hours. Data from Coinglass shows liquidations accelerated into 8:57 p.m. ET as leveraged positions unwound.
Is This A Crypto Selloff Or A Macro Shock?
The selloff followed a cluster of macro disruptions that unsettled global risk assets. Mexican security forces killed cartel leader Nemesio “El Mencho” Oseguera, triggering violence that led several international airlines to suspend Mexico flights. In the United States, pending home sales fell 0.8% in January to 70.9, the lowest reading since tracking began in 2001.
The turbulence deepened after President Donald Trump said he would raise a blanket 10% tariff on U.S. imports to 15%, according to Reuters. Wall Street futures and the dollar weakened following the announcement, while the Japanese yen surged amid speculation the Bank of Japan could tighten policy further.
“This is a confluence of macro shocks hitting a market that was already fragile,” said Rachael Lucas, crypto analyst at BTC Markets.
She noted bitcoin had recorded five consecutive weeks of ETF outflows and that spot trading volumes were down 59% week on week, limiting liquidity. Vincent Liu, chief investment officer at Kronos Research, added that yen strength forced funds to deleverage, intensifying pressure across risk assets.
Yet some metrics suggest positioning may be stretched. Lucas said bitcoin’s short-term Sharpe ratio recently reached -38.38, levels previously seen near cycle lows in 2015, 2019, and 2022, while whales accumulated 200,000 BTC over the past month. Traders are now watching $60,000 for support, with Thursday’s U.S. initial jobless claims and potential ETF inflows as the next catalysts.
