Bitcoin falls below US$ 66,000 and generates over US$ 500 million in liquidations in the futures market
The market began the year expecting 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, pulling other cryptocurrencies down with it. As a consequence, over US$ 500 million (R$ 2.6 billion) were liquidated in the futures market, mostly in long positions.
Among the factors are geopolitical uncertainties regarding 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 is likely to soar worldwide, requiring central banks to raise interest rates, attracting investments in fixed income, and ultimately decreasing the appetite for risky assets like Bitcoin.
According to reports from the American press, Donald Trump is considering sending an additional 10,000 soldiers to the region, signaling that the conflict may extend longer than expected.
In addition to this, the sale of 15,133 bitcoins by the miner Mara Holdings, as well as by other whales, increases the pressure on the charts.
ETFs follow the same trend. Data from SoSoValue reveals outflows of $171.2 million this Thursday (26), the highest number since March 6.
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 CoinStats data, Ethereum is down 3.5% and BNB loses 2.8% of its value. Other names like Solana, Tron, and Dogecoin also close the week in the red.
More than 120,000 traders liquidated
Traders who were leveraged in the futures market were again affected by the drop. Of the $500 million liquidated, $442 million were long positions, primarily 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."
Another detail that stands out is that the largest liquidation was in S&P 500, the 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 dropping 1.3%, the same percentage lost by the Dow Jones index.
Finally, investors should monitor the developments of the Iran war and expectations regarding the monetary policies of 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.
