Bitcoin plunged to $65,707 on Wednesday, its lowest level in four months, as a wave of forced selling swept the crypto market. The 7% daily slide — part of a 12% weekly rout — triggered $1.85 billion in total liquidations, with $894.5 million concentrated in BTC positions alone. By the time of reporting, the largest digital asset had clawed back slightly to $67,057, but the damage was done.
Liquidations sweep the market
The selloff accelerated after Bitcoin broke below the $68,000–$70,000 support range that had held since February. That zone had become a magnet for leveraged longs, and when it gave way, stop-losses cascaded. The result: the biggest single-day liquidation event in months. Traders who had piled on leverage during the spring rally got caught flat-footed.
Strategy's 32 BTC sale: a red herring
In the middle of the chaos, Michael Saylor's Strategy sold 32 BTC — its first sale in three years. The proceeds went to fund preferred stock dividend payments. Some market watchers, including the Kobeissi Letter on X, quickly blamed the sale for the crash. But that math doesn't work: a $2 million sell order doesn't cause a $1.85 billion liquidation cascade. The real culprit was excess leverage built up on a deteriorating technical structure, not a corporate treasurer cashing pocket change.
Mt. Gox transfer stirs nerves but no sell-off
Adding to the unease, the Mt. Gox estate moved roughly $739 million worth of Bitcoin on-chain. On-chain analysis showed the transaction was a wallet reorganization, not a sale — exchange inflows never spiked. Still, the psychological weight of the Mt. Gox overhang remains. Each time those coins move, a chunk of the market braces for a distribution that hasn't materialized.
Key levels in play
With $68,000–$70,000 now resistance, all eyes are on the $64,000–$65,000 zone. That's the last major support before a potential slide toward $60,000 or lower. On the upside, Bitcoin would need to reclaim $72,000 to regain any bullish footing, with heavier supply stacked at $76,000–$78,000. For now, the market is waiting to see whether the liquidation wave clears enough leverage to allow a bounce — or if this is the opening act of a deeper correction.
