Bitcoin’s price plummeted sharply below $67,000 today, prompting a humorous post from Changpeng Zhao (CZ) referencing the market.
The Binance founder, jokingly saying “I’m poor again,” recalled that he last made a similar comment when Bitcoin dropped from $67,000 to the $30,000 range, and added that “it didn’t end up too badly” for BTC, alluding to the subsequent massive bull market.
Selling pressure in the cryptocurrency market deepened as the weekly decline accelerated. Bitcoin tested below $67,000 with a loss exceeding 9% during the day, a level that caused losses for many investors who bought during the recent rally. This pullback began to test both Wall Street’s recently increased confidence in crypto and the resilience of new individual investors who entered the market at near-peak levels.
Forced liquidations of leveraged positions are playing a significant role in the sharp market movements. According to Coinglass data, over $3 billion in liquidations have occurred in the Bitcoin market in the last eight days. As of this morning, more than 59,000 investors worldwide have been liquidated, resulting in an additional $730 million in forced sales. Glassnode analysts stated that the futures market has entered a “forced delegitimization” phase, and large waves of long liquidations are increasing volatility and fueling the decline.
Despite ongoing selling pressure, a strong buying base has yet to emerge in the market. A significant portion of the large buyers who supported Bitcoin’s rise last year have withdrawn, and inflows from ETFs and corporate earnings have also slowed. Glassnode notes that this situation has deprived the market of the “stable buying support” seen in previous rallies.
*This is not investment advice.
