Bitcoin Price Drop Triggers $505M in Liquidations Amid Global Market Uncertainty

Bitcoin's price drop below $65K on Monday triggered over $505 million in liquidations across crypto markets, according to CoinGlass data.

The decline was largely driven by policy uncertainty around U.S. tariff changes and rising geopolitical tensions, said Tim Sun, senior researcher at HashKey Group.

Bitcoin alone accounted for $232 million of the total liquidations, while Ethereum contributed $126 million, making up nearly 70% of the total.

Sun attributed the market's response to a broad repricing of risk assets, citing sticky December PCE inflation data and elevated crude oil prices tied to Middle East tensions.

The Federal Reserve's rate-cut expectations have also shifted, with markets now assigning a 96% chance that the Fed will hold rates steady at its next FOMC meeting.