BTC drops 6% in a day, erasing gains since early April, as liquidations surge amid risk-off sentiment in crypto markets.
Bitcoin fell below $67,000 for the first time since early April, shedding 6% in a single day as $1.25 billion in crypto positions were liquidated. The decline accelerated after the Wall Street open, with BTC/USD hitting a low of $66,948 on Bitstamp.
The drop contrasts with the S&P 500, which set another record high, highlighting Bitcoin’s divergence from traditional risk assets. Analysts now see potential for further declines, with some targeting the mid-$50,000 range or the 50-month exponential moving average at $66,250.
Traders noted a shift toward stablecoins as investors adopted a risk-off stance, exacerbating the sell-off. The liquidation cascade mirrored a bear flag breakdown pattern observed earlier in the year.