Bitcoin (BTC) slipped below $65,000 in early Asia trading, triggering roughly $230 million in long liquidations as markets contend with heightened macro uncertainty.
The immediate driver was former President Trump’s decision to raise a proposed global tariff from 10% to 15%, following the Supreme Court’s rejection of his “Liberation Day” tariffs last Friday. The move adds to investor caution amid ongoing U.S.-Iran tensions.
The mining sector is under significant stress, with BTC trading far below the estimated average mining cost of approximately $87,000. Operators are increasingly prioritizing liquidity over accumulation, exemplified by Bitdeer Technologies’ full liquidation of its BTC treasury in recent days, following equity and convertible bond financing initiatives.
Despite the price weakness, the options market shows a moderated downside bias compared with earlier sell-offs. Recent ETF activity also suggests a shift in capital rather than outright withdrawal. Last week saw $316 million in net outflows from Bitcoin ETFs, primarily linked to basis trade adjustments and yield compression, rather than a structural decline in institutional demand.
Analysts note that positioning in IBIT ETFs remains active, with derivative markets reflecting ongoing portfolio optimization rather than capitulation. Market observers suggest that BTC may be entering the later stages of this drawdown, with key catalysts such as the proposed Clarity Act and upcoming U.S.-Iran negotiations potentially providing support. A sustained reclaim of the $74,000 level is seen as critical for a more durable recovery.
One of them noted that $BTC has lost key support in the $66K range and quickly dropped into the $64K-$65K demand zone. Currently, the price is reacting within this green support area.
If $64K fails decisively, the next major liquidity could be found near $62K. Conversely, if buyers hold this zone, we may see a relief bounce back toward $67K-$68K. For now, momentum clearly favours sellers.
Another analyst noted that Bitcoin dipping below $65K marks the lowest price since the spike low 17 days ago. The move initially triggered short liquidations near $70K, but now the pullback is wiping out longs with stops below $65K.
Range trading in this washing machine environment is not for the faint-hearted; volatility remains extreme, and moves are swift. Bitcoin logged its worst-ever start to a year on record, falling 23% within the first 50 trading days of 2026.
