Bitcoin falls below US$ 66,000 and generates over US$ 500 million in liquidations in the futures market
The market began the year predicting two interest rate cuts by the Fed in 2026, but now sees a hike as more likely
Bitcoin is down 4.2% in the last 24 hours, dragging other cryptocurrencies down. As a consequence, more than US$ 500 million (R$ 2.6 billion) were liquidated in the futures market, mostly in long positions.
Among the factors are geopolitical uncertainties regarding the conflicts in the Middle East, as well as the expiration of US$ 14.5 billion in Bitcoin options this Friday (27), sales by large whales, and outflows in ETFs.
The most pessimistic believe that the cryptocurrency could extend its losses below $50,000, a price last seen in August 2024.
What is pressuring Bitcoin?
The main attention of the market is focused on the conflicts in the Middle East. After all, the decrease in ship traffic through the Strait of Hormuz directly impacts the price of oil.
As a consequence, inflation tends to soar worldwide, requiring central banks to raise interest rates, attracting investments in fixed income and ultimately decreasing appetite for risk assets like Bitcoin.
According to reports from the American press, Donald Trump is considering sending more 10,000 soldiers to the region, signaling that the conflict may extend longer than expected.
In addition, the sale of 15,133 bitcoins by the miner Mara Holdings, as well as by other whales, increases pressure on the charts.
ETFs follow the same trend. Data from SoSoValue reveals outflows of $171.2 million this Thursday (26), the largest amount since March 6.
Bitcoin ETF flows can be used as a market thermometer. Source: SoSoValue.
Finally, the expiration of $14.5 billion in Bitcoin options this Friday (27) also added volatility to the market.
While Bitcoin is down 4.2% in the last 24 hours, according to data from CoinStats, Ethereum is down 3.5% and BNB has lost 2.8% of its value. Other names like Solana, Tron, and Dogecoin also close the week in the red.
Bitcoin is trading in the range of $66,000 this Friday (27) and other cryptocurrencies are following the decline. Source: CoinStats.
More than 120,000 traders liquidated
Traders who were leveraged in the futures market were again affected by the decline. Of the $500 million liquidated, $442 million were long positions, mainly in Bitcoin, Ethereum, and Solana.
According to data from CoinGlass, in the last 24 hours, 126,229 traders were liquidated, with total liquidations of $500.63 million. The largest individual liquidation occurred on Hyperliquid, in the XYZ:SP500/USD pair, amounting to $6.33 million.
Traders suffer the consequences of Bitcoin's decline with a new wave of liquidations. Source: CoinGlass.
Another detail that stands out is that the largest liquidation was in S&P 500, a famous American index that was recently introduced to the crypto market. This is because the traditional market is also operating in decline, with the SPX itself falling 1.3%, the same percentage lost by the Dow Jones index.
Finally, investors should monitor the developments of the Iran war and the expectations regarding the monetary policies of the major central banks. For example, the FedWatch tool from CME Group already reveals a ~25% chance that the Fed will raise interest rates in the coming months.
The market was expecting two interest rate cuts by the American central bank, but now believes it may rise in the upcoming meetings. Source: CME FedWatch tool.$ETH 