Bitcoin Slammed by Failed Attempt to Clear $65,500 Resistance

Bitcoin's volatility returned on Monday as it repeatedly failed to break past the $65,500 resistance level, resulting in $75 million in liquidations for leveraged traders. The cryptocurrency had jumped to a session high of $65,500 after reports of a pause in fighting between U.S. and Iranian forces, but ultimately pulled back to $64,336.

The sharp price swings triggered nearly $45 million in short bets being liquidated over a 24-hour window, while roughly $30 million in leveraged long positions were wiped out during the same period, according to Coinglass data. The price action was generally flat, leaving bitcoin's market capitalization at approximately $1.3 trillion.

The cryptocurrency's whipsaw price action was likely due to the sudden cooling of geopolitical tensions and the resulting impact on crude oil prices. However, this upward trajectory quickly stalled as weak inflows into spot bitcoin ETFs and persistent political infighting over the final text of the CLARITY Act reignited regulatory headwinds.