The world’s largest cryptocurrency, Bitcoin, dropped below $65,000 before bouncing. The price drop is driven by weak sentiment, ETF outflows, and heavy liquidation. Falling by 5% in the last 24 hours, BTC exhibited an extreme flash crash in the crypto market and triggered millions of liquidations in an hour.
BTC lost 28% of its value so far this year due to heavy political and economic storms. Followed by the slump in the price of Bitcoin, investor confidence in the cryptocurrency market continues to be weak.
Price analysis of Bitcoin
The trading price of BTC as of now is $66,347.65, exhibiting a 5% change in the last two hours and 9.84% overall drop in the last 24 hours. The last seven-day trend shows that Bitcoin is following a downward trend, signalling the lack of strong bullish momentum.
Bitcoin was priced as high as $126,000 in late 2025, and currently, the value declined to $65,000, losing almost half of its value. The Bitcoin dominance in the market was down by 0.02%. Almost $1.03billion liquidated in the last 24 hours, which is 230% higher compared to the previous day. BTC broke below 78.6% Fibonacci retracement level, confirming a bearish momentum.
Derivative data shows that liquidations surged to $481million, out of this, over $430million liquidations were long positions, while short liquidations were limited to under $50million.
Despite the pullbacks, Bitcoin is considered the safest haven by multiple institutional investors. During the volatility of late 2025, Mubadala Investment Company, owned by the government of Abu Dhabi, increased its stake in BTC by 46%, which is worth about $630million.
Likewise, despite a sharp decline in the cryptocurrency market, Al-Warda Investments owned 12.7 million shares of IBIT. This shows that Bitcoin still gains momentum even in the midst of falling prices.
Macro Economic Headwinds Spark Risk-off Move
The performance of Bitcoin in the last 24 hours is triggered by heavy macroeconomic headwinds. The death of drug leader Nemesio “El Mencho” Oseguera and the immediate suspension of flights to Mexico generated a wave of geopolitical tension and squeezed the price of Bitcoin dramatically. Additionally, the US housing market crisis, which signals economic uncertainty, led the Bitcoin price to crash to $65,000. U.S.
President Donald Trump’s announcement about 10%- 15% rise in the tariff created high economic turbulence. The increased concerns of investors about the possible trade barriers that may hinder economic growth and create a liquidity drain caused the digital gold, Bitcoin, to crash to $65,000.
After the tariff announcement by Trump, the price of Bitcoin hits $64,200 for the first time in February. Open interest declined, symbolising that people are unwinding their position rather than opening new bets. Polymarket predicts that Bitcoin has a 73% probability of dipping into $60000 first in February when compared to $80k.
As of now, the market is reacting to macroeconomic pressure, and this can be surpassed if Bitcoin can crawl back to above $65,000 and sustain there for the next two days.
Exit of Whales
Bitdeer, the bitcoin mining giant, liquidated its entire Bitcoin treasury as BTC crashed at $65,000. Bitdeer offloaded 1132.9 BTC, which is worth $75million as a part of their defence mechanism against further losses. Additionally, several other large public miners, such as Core Scientific, Bitfarms, Riot, and Terawolf, liquidated their Bitcoin to shoreup AI projects. The rising inflows to exchanges generate a warning signal to investors.
