Bitcoin has dropped below $68,000 for the first time in four days, largely influenced by rising U.S. Treasury yields nearing a one-year high of 4.5%. This decline triggered over $50 million in long liquidations within an hour, predominantly from bitcoin positions, which accounted for roughly 70% of the total. The liquidation heatmap indicates a significant liquidity cluster around $66,000, suggesting potential further downside for the cryptocurrency.
The broader financial landscape is contributing to this bearish sentiment, with a stronger dollar and increased volatility in the bond market weighing heavily on risk assets, including cryptocurrencies and crypto-related equities. Companies like Coinbase and MicroStrategy saw their shares dip in pre-market trading, reflecting the negative correlation between bitcoin’s decline and the performance of crypto stocks. Additionally, negative funding rates in perpetual futures contracts further underscore the prevailing pessimism among traders.
Market professionals should note that institutional demand for bitcoin appears to be cooling, as evidenced by a $171 million withdrawal from U.S.-listed spot bitcoin ETFs. This trend raises concerns about bitcoin’s ability to maintain its value near the $70,000 mark amid ongoing macroeconomic pressures.
Source: coindesk.com