CryptoSlate
Bitcoin broke below $70,000 and slid to as low as $65,404 over the past day, triggering roughly $1.8 billion in liquidations as leveraged long positions built around hopes of a quick rebound were forced out. The failed bounce above $73,000 left no spot bid to absorb the selling, and automated unwinds accelerated the drop into a vacuum.
Why it matters
The selloff is the first major stress test of the structural supports that anchored Bitcoin's rally through early 2025 — and several of them are bending at once. Strategy confirmed it sold 32 BTC for $2.5 million to fund cash distributions on its perpetual preferred stock, the first liquidation by the company most synonymous with the never-sell philosophy. Arca CIO Jeff Dorman flagged the sentiment risk: Strategy has accumulated over $50 billion of Bitcoin and holds roughly 4% of the 21 million supply, so any narrative that it has turned into a net seller is a powerful counterweight to the corporate-treasury bid.
Layered on top is the disappearance of the ETF cushion. Bitcoin ETFs have shed more than $4 billion over the trailing four weeks, the most aggressive redemption cycle since the spot products launched, with allocators rotating capital toward a wave of AI-linked private market opportunities at SpaceX, Anthropic, and OpenAI. Bitcoin Bond Company CEO Pierre Rochard noted the AI trade has added roughly $19 trillion in market cap to the top 50 public equities over the past 12 months — about 13 times Bitcoin's total market value — and that liquidity is being pulled away from crypto just as the macro support thins.
Market impact
Traders have fundamentally repriced downside risk. Deribit data shows roughly $1.2 billion in open interest has built around the $60,000 strike, with another $600 million or so at $50,000 — $1.8 billion of puts and collar structures now sitting at levels that looked distant a week ago. The shift from dip-buying to tail-insurance is the cleanest read on the tape: ETF outflows, Strategy's first sale, and a failed technical bounce have together turned $70,000 from a psychological floor into resistance, and the next durable line of defense is being priced meaningfully lower.
Frequently asked questions
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Why did Bitcoin drop to $65,000?
Bitcoin broke below $70,000 after a failed rebound above $73,000 failed to attract spot buying. Automated liquidations then accelerated the move, taking BTC to as low as $65,404 and forcing out roughly $1.8 billion in leveraged long positions.
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Did MicroStrategy really sell Bitcoin?
Strategy confirmed it sold 32 BTC for $2.5 million to fund cash distributions and dividend payments on its high-yield perpetual preferred stock. It is the first Bitcoin sale by the company in years and the first time it has liquidated coins to meet a routine obligation.
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How much have Bitcoin ETFs lost?
According to SoSoValue, US spot Bitcoin ETFs have shed more than $4 billion over the trailing four weeks, the most aggressive redemption cycle since the products launched.
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What does the options market say about the next move?
Deribit data shows roughly $1.2 billion in open interest has built around the $60,000 strike, with about $600 million more at $50,000. Cumulatively about $1.8 billion in puts and collar structures are now sitting at those levels, a sign traders are insuring against a deeper reset rather than buying the dip.
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Why are investors rotating out of Bitcoin into AI?
Analysts point to a generational rotation into artificial intelligence. Pierre Rochard noted the AI trade has added roughly $19 trillion in market cap to the top 50 public equities over the past 12 months, about 13 times Bitcoin's total market value, as institutions free up dry powder for upcoming private-market and…
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