Bitcoin slips below $67,000 as $1.5bn in crypto longs are liquidated

Bitcoin fell sharply to a two-month low on Tuesday evening, slipping below $67,000 as a wave of forced liquidations hit crypto derivatives markets. The sell-off wiped out nearly $1.5 billion across leveraged positions, intensifying downward pressure on the largest digital asset.

The unwind was driven by automatic closures of highly leveraged long trades on major derivatives venues; Bloomberg data shows that roughly $800 million of those losses were concentrated in Bitcoin positions. Aggregated liquidation trackers reported a significant surge in closed long exposures over the 24–48 hour window, reflecting a rapid deterioration in short-term liquidity and momentum.

Market dynamics were compounded by outflows from crypto investment products and a shift in macro expectations. Investors have pared back bets on imminent Federal Reserve rate cuts, triggering withdrawals from digital asset funds and reducing risk appetite. These fund flows, together with thinner market depth, amplified price moves during the liquidation event.

Research from Presto highlights that this year’s crypto drawdowns have often coincided with rallies in AI-linked equities and safe-haven assets such as gold, suggesting capital has rotated into pockets perceived as offering clearer near-term opportunities. Such thematic rotations, coupled with changing Fed rate expectations, help explain why crypto has lagged some traditional risk assets during recent bouts of volatility.

Analysts expect continued volatility as derivatives positions are rebalanced and ETF flows remain uncertain. Short-term traders will likely watch open interest and funding-rate dynamics for signs of stabilization, while longer-term investors assess whether the pullback creates accumulation points. Overall, the episode underscores how macro signals and thematic rotations can quickly reshape risk positioning in crypto markets.