Bitcoin Falls Below $65K as Altcoins Slide Deeper

Key Takeaways

• Bitcoin fell below $66,000, extending weekly losses.
• Long liquidations dominated as nearly $394M was wiped out.
• Major altcoins – ETH, SOL, XRP, BNB, ADA – dropped sharply.
• BTC remains below short-term holder cost basis, signaling ongoing stress.

The total crypto market capitalization fell to around $2.32 trillion, down roughly 1.5% on the day, reflecting cautious sentiment and continued deleveraging. While the selloff is not as aggressive as previous capitulation events, the weakness is clearly spreading beyond Bitcoin.

Bitcoin drops under $66K

Bitcoin was trading near $65,700 at the time of writing, down more than 4% over the past 24 hours and roughly 12% over the last seven days. The move below $66,000 marks another psychological blow for bulls who had hoped the asset would stabilize above the mid-$60K range.

Liquidation data shows nearly $394 million wiped out in the past 24 hours, with long positions accounting for the majority at approximately $285 million. This suggests that overly optimistic traders were caught off guard as downside momentum accelerated.

Short term holders under pressure

On-chain data adds another layer of concern. The short term holder cost basis sits around $94,200, while Bitcoin trades near $68,000 on average in recent sessions, creating a gap of roughly 28%. That implies a significant portion of recent buyers are sitting on notable unrealized losses.

More importantly, Bitcoin has been trading below the short term holder cost basis for four consecutive months. Historically, such extended periods of stress have been associated with deeper corrective phases. During previous bear markets, similar conditions lasted for over a year.

While some analysts argue this cycle may differ due to stronger institutional participation and improved market structure, the prolonged deviation below cost basis is increasingly being compared to bear market behavior.

Altcoins follow the downside

The weakness in Bitcoin has quickly spilled into major altcoins.

Ethereum dropped toward $1,900, losing more than 5% over the past 24 hours and over 12% on the week. The second largest cryptocurrency continues to struggle below key psychological support levels, with sentiment deteriorating as broader risk appetite fades.

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Solana declined to around $79, down more than 6% daily and over 15% in the last seven days. XRP fell to approximately $1.35, also down nearly 13% on the week. BNB was among the heavier losers, sliding close to 20% over seven days, while Cardano traded near $0.26 after double digit weekly losses.

The uniform pullback across large caps signals that this is not an isolated Bitcoin event but a broader risk-off move within crypto.

Liquidity remains a key factor

Another concern is liquidity. Stablecoin market cap trends have shown signs of stagnation or mild contraction in recent sessions. Historically, sustained rallies require expanding liquidity, and without fresh inflows, rebounds tend to remain short-lived.

At the same time, macro uncertainty continues to hang over markets. Upcoming inflation and labor data could influence expectations around interest rate policy, which in turn affects overall risk appetite.

For now, Bitcoin’s inability to reclaim and hold above $66,000 keeps the short term structure fragile. Whether this turns into a prolonged bear phase or a deeper but temporary correction may largely depend on liquidity conditions and the broader macro backdrop.

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