Bitcoin Traders Suffer $75M in Liquidations After Three Failed Attempts at Clearing $65,500

Bitcoin's price action on Monday was marked by two sharp price swings that failed to break past the $65,500 resistance level. The cryptocurrency jumped to a session high of $65,500 as markets reacted to reports of a pause in fighting between U.S. and Iranian forces.

Despite pulling back to just over $65,000 shortly afterwards, bitcoin held ground through most of early Sunday morning. However, by 2:15 a.m. EDT, it reclaimed $65,500, only for an ensuing sell-off to push it under $65,000 nearly six hours later.

A third attempt to break $65,500 failed, triggering a sharper drop to $64,336. The cryptocurrency's whipsaw price action burned both overleveraged short and long traders, with 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.

The sudden cooling of geopolitical tensions triggered a sharp retreat in crude oil, providing immediate tailwinds for risk assets, including crypto. However, that upward trajectory quickly stalled due to weak inflows into spot bitcoin ETFs and persistent political infighting over the final text of the CLARITY Act.