The cryptocurrency market saw liquidation of over $160 million after Bitcoin failed to break above $65,000. After a quiet weekend, where the price settled around $63,000, Bitcoin tried to rally during the Asian session on Monday morning but hit a strong resistance near the $65,000 level.
The rapid rejection of this level led to sharp market volatility, resulting in more than 60,000 traders being liquidated throughout the day. Bitcoin had been performing well in the days leading up to this, especially after the US Federal Reserve’s decision to cut interest rates by 0.5% on Wednesday.
Over the weekend, Bitcoin was unable to maintain its momentum and continued to trade in a tight range around $63,000. The market then saw more volatility on Sunday evening and Monday morning, with Bitcoin first dropping to $62,400, then rising to $64,000 before losing around $1,500 again.
Later, Bitcoin price rose significantly to reach a four-week high of $64,800 on Bitstamp, but selling forces quickly intervened to halt the rise. As of now, Bitcoin is trading around $1,200 below that high.
Many altcoins followed the same volatility pattern, with some posting significant gains. These sharp market moves hurt traders who were overly leveraged, with around 62,000 market participants liquidating their positions. According to CoinGlass data, the total value of liquidated positions was around $165 million.