Bitcoin retreated below the $65,000 mark as Asian markets opened, triggering heavy volatility and the liquidation of approximately $230 million worth of long positions. Analysts identified the increase in global tariffs proposed by former US President Donald Trump, alongside ongoing tensions between the US and Iran, as key macro factors behind the sudden price drop.
Miners Pivot to Liquidity in Response to Price Pressure
The cryptocurrency mining sector is under acute stress at current market levels. With Bitcoin trading substantially below the sector’s widely cited average production cost of $87,000 per coin, miners are opting for liquidity over long-term holdings, selling off their coins to increase financial flexibility. Bitdeer Technologies recently made headlines by liquidating all its Bitcoin assets to bolster its balance sheet.
ETF Outflows and Market Positioning
Despite Bitcoin’s relative weakness, the downward momentum in the options market is notably milder than during previous sell-offs. Last week, Bitcoin exchange-traded funds (ETFs) recorded a combined net outflow of $316 million. Experts attribute these withdrawals primarily to spread and arbitrage strategies rather than signaling an end to institutional demand.
Open positions in ETFs, such as IBIT, remain active while derivatives traders are focused on optimizing exposures amid the shifting environment. Looking ahead, potential regulatory developments and renewed US-Iran diplomacy could support a rebound. Still, a sustainable rally may only materialize if Bitcoin manages to firmly reclaim the $74,000 threshold, which market watchers describe as a key resistance level.
Technical Analysis: Support Levels and Market Risks
Technically, Bitcoin’s loss of its crucial $66,000 to $65,000 support range led to a rapid slide down to the $64,000–$65,000 band, where demand is currently absorbing excess supply.
If the $64,000 support fails, the next major liquidity zone is estimated at $62,000. However, should buyers hold this level, a short-term recovery could drive prices back to the $67,000–$68,000 range. According to recent data, however, momentum remains with the sellers as the market attempts to find equilibrium.
Another technical perspective highlighted that falling below $65,000 marked a 17-day low for Bitcoin. Previously, short positions closed near the $70,000 zone, while the latest downward move resulted in the forced liquidation of long positions beneath $65,000.
Such fast and erratic price swings have made short-term trading particularly challenging. Bitcoin has already recorded a 23% decline in the first 50 trading days of 2026, illustrating the heightened volatility and risk for participants.
