Bitcoin Just Lost $65,000 and $600 Million in Positions Went With It
The Fed meets today, Bitcoin is sliding and Liquidations are piling up. Here is everything happening in crypto right now.
Bitcoin woke up on the wrong side of $65,000 this morning and the damage has been significant.
The world’s largest cryptocurrency dropped nearly 3 percent overnight, falling to $63,390 and breaking below the $65,000 level that traders had been watching as critical support, and the move has triggered a wave of forced selling that the broader market is still absorbing, with over $600 million in leveraged positions liquidated since yesterday, more than $530 million of that figure coming from long trades, meaning the majority of the pain has fallen on traders who were betting Bitcoin would go up.
It did not.
The timing of the drop is not accidental. The Federal Open Market Committee begins its two-day policy meeting today, with markets pricing in a 25 to 30 percent probability of a rate hike, and that uncertainty is doing what uncertainty always does in financial markets, it pushes cautious traders to reduce risk, exit leveraged positions and wait to see what comes out of the Fed’s meeting before committing capital in either direction.
Daily trading volume has dropped alongside the price, falling from $75 billion yesterday to $66 billion today, reflecting a market that is pulling back rather than actively selling, and the Fear and Greed Index has followed the price lower, sitting at 29 out of 100 this morning, down from 30 yesterday, remaining in Fear territory and edging closer to Extreme Fear without quite crossing into it yet.
The broader market has followed Bitcoin’s lead, with nearly every major cryptocurrency trading in the red over the past 24 hours, though Pump.fun and Canton are two notable exceptions, both up approximately 1 percent in a sea of red, the kind of idiosyncratic movement that happens in down markets when specific project news or community activity overrides the macro pressure affecting everything else.
The one genuinely positive signal in an otherwise difficult 24 hours is the ETF flow data, which tells a more complicated story than the price action alone suggests.
Yesterday marked a second consecutive day of positive Bitcoin ETF inflows, with over $265 million in Bitcoin purchased through ETF products, more than $200 million of that figure coming from BlackRock’s IBIT, a significant reversal from the nearly $10 billion in ETF outflows BlackRock recorded over the previous ten sessions, and the return of institutional buying through ETFs is the kind of structural support that can put a floor under Bitcoin’s price even when short-term sentiment is negative.
The market is essentially telling two stories simultaneously, retail and leveraged traders reducing exposure ahead of the Fed while institutional money quietly returns through ETF products at lower prices, and which of those two stories dominates the next 48 hours will depend almost entirely on what Fed Chair Kevin Warsh says at his press conference tomorrow at 2:30pm Eastern Time.
A hold with dovish language could be enough to reverse today’s losses. A hold with hawkish signals about September could push Bitcoin toward the $60,000 retest that analysts are now discussing openly. A hike, however unlikely, would be a different conversation entirely.
Watch tomorrow at 2:00pm Eastern Time. The answer arrives then.
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