Bitcoin Plummets to $65K Amid Geopolitical Risks

Bitcoin's price took a sharp dive on Wednesday, dropping to $65,360 and triggering massive liquidations across the cryptocurrency market. According to data from TradingView, the sudden drop was accompanied by an extended deviation from the local high of $82,800, reaching a 21% decline.

The resulting liquidation of $1.8 billion in positions marked one of the largest single-day events in recent months, with over $1.58 billion in long positions being wiped out. Bitcoin accounted for $774.2 million of this total, while Ether followed closely behind with $440 million in long liquidations.

Analysts pointed out that the industry is growing, as evidenced by the fact that the current liquidation levels are lower than those seen during the Covid-19 pandemic in 2020. However, the increased supply on Binance, the world's largest cryptocurrency exchange, may amplify price volatility and selling pressure.