Bitcoin (BTC) Falls Below $66,000 as Crypto Liquidations Hit Nearly $500mn

Bitcoin (BTC) fell in early Asia trading on Tuesday, erasing all of the gains it mate a day earlier, driven by ongoing profit-taking and continued net

Bitcoin price fell on Tuesday morning in Asia, erasing all of the gains it made a day earlier, amid ongoing profit-taking and continued net outflows from U.S.-listed bitcoin exchange-traded funds (ETFs).

Cryptocurrency prices today: Bitcoin slips as crypto liquidations hit nearly $500m

World’s no.1 crypto fell to as low as $64,000 on Monday, before recovering some ground to trade at about $65,600 by 04:34 am ET (08:34 GMT).

The world’s largest cryptocurrency fell roughly 1% in the past 24 hours to $65,635 by 04:34 am ET (08:34 GMT). BTC initially dropped as low as $64,000, before reversing some of the sharp losses.

The cryptocurrency hovered around its 50-day moving average at $66,000, testing the medium-term uptrend.

Bitcoin had a relatively quiet weekend, mostly hovering around the $66,000 mark. Monday's trading started slowly but picked up later in the day. However, the premier crypto asset dropped by over $3,000, hitting its lowest level since May 15.

This sharp volatility impacted over-leveraged traders as more than 190,000 positions were liquidated in the past day for a total of over $480 million. At the same time, Bitcoin exchange-traded funds (ETFs) saw a net outflow of $145 million, extending last week's poor performance and further dampening bullish sentiment in the market.

Last week, Bitcoin fell below $65,000 for the first time in a month as ETF outflows topped $500 million after the Federal Reserve indicated only one interest rate cut for 2024.

According to market analysts, other factors also did nothing to help support Bitcoin's price. For instance, French President Emmanuel Macron unexpectedly called a snap election in the country, a move that strengthened the dollar as traders dumped the euro.

A strong dollar tends to put pressure on Bitcoin as it makes dollar-denominated assets more attractive to investors, reducing demand for alternative assets like Bitcoin.

Crypto price today: Altcoins stage mixed performance

Among other cryptocurrencies, most major altcoins also saw slight declines on Monday morning.

World no.2 crypto ETH/USD fell by 2.7% to $3,447.18, and Cardano fell nearly 6.4%. On the other hand, XRP rose by 2.1%, while Solana saw a 4.8% decrease.

Meme tokens faced significant losses, with DOGE/USD and Investing.com Shiba Inu Index plunging 7.6% and 9%, respectively.