Over $1 billion in cryptocurrencies liquidated as Bitcoin plunges 6%, breaking below the $67,000 mark.

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Bitcoin sentiment has deteriorated sharply, triggering over $1 billion in forced liquidations across cryptocurrencies and putting the market under its most severe pressure in recent months.

Bitcoin fell 6% at one point on Tuesday, dropping below $67,000 for the first time since April 5. The ongoing geopolitical risks from the situation in Iran, combined with major holder Strategy's selling action, have jointly suppressed investors' risk appetite. According to CoinGlass data, the scale of forced liquidations this time has set the highest level since February this year.

Meanwhile, the two key sources of demand that have traditionally provided important support for Bitcoin prices—spot ETFs and Strategy—are now both simultaneously turning into price drags, further intensifying market pressure.

Strategy’s Sell-off Sparks Sentiment Turning Point

On Monday, Strategy disclosed that it had sold about 32 bitcoins, cashing in roughly $2.5 million—the company's first reduction since the end of 2022. Compared to its total Bitcoin holdings of about $5.9 billion, this sale is minimal, yet it broke the company's longstanding “only buy, never sell” minimalist strategy at a sensitive moment for the market.

Jasper De Maere, an OTC trader at market maker Wintermute, stated:

"This round of selling appears to have been triggered by Strategy’s announcement that it sold 32 bitcoins. But the reality is, even without this news, market momentum was already fading, and institutional participation at OTC trading desks was also dropping to low levels."

Continuous ETF Net Outflows Intensify Price Fragility

According to compiled Bloomberg data, U.S. Bitcoin spot ETFs have recorded net outflows for 11 consecutive trading days, marking the longest streak in history, with approximately $3.5 billion redeemed by investors during this period.

James Butterfill, Head of Research at CoinShares, pointed out that the price buffer effect brought by advances in U.S. crypto regulatory legislation has been “completely offset” by safe-haven sentiment triggered by the Iran situation.

Bitcoin has now pulled back nearly 50% from its all-time high of around $126,000, which was set in October last year. Meanwhile, Wall Street stocks are on the rise due to revived AI trading and ongoing cease-fire expectations, creating a clear divergence from the crypto market.

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