Bitcoin extended its decline, falling more than 3% over the past day and dropping below $67,000 for the first time since March 9, as a wave of liquidations swept through the market. According to Coinglass, over $50 million in long positions were liquidated within a single hour, with bitcoin trades making up the bulk of the total.
The sell-off also pressured crypto-related equities in pre-market trading, including Circle Internet (CRCL), Coinbase (COIN) and Strategy (MSTR), the largest publicly listed holder of bitcoin.
The move underscores the vulnerability created by leveraged bullish positioning. As prices fell, long positions were forcibly closed due to insufficient margin, amplifying the downward momentum.
Derivatives data suggests further downside risk may remain. A 48-hour liquidation heatmap highlights a large liquidity cluster just below $66,000, pointing to a potential near-term target if selling pressure continues.
Sentiment in futures markets has also shifted. Funding rates have turned negative, indicating that traders are increasingly positioning for further declines.
At the same time, the macro environment is becoming more challenging. The U.S. 10-year Treasury yield is approaching 4.5%, its highest level in nearly a year, diminishing the appeal of risk assets such as cryptocurrencies.
Volatility in fixed income markets is rising as well, with the MOVE index climbing 18% over the past 24 hours, reflecting heightened uncertainty around inflation and interest rate expectations.
Energy markets are contributing to the pressure. Oil prices, including Brent and WTI crude, have risen around 3% following disruptions to Russian supply linked to Ukraine, complicating efforts by U.S. President Donald Trump to stabilize global oil flows.
Meanwhile, the U.S. dollar continues to strengthen, with the DXY index moving toward the 100 level, adding another headwind for bitcoin and the broader crypto market.
