Key Highlights
- Bitcoin plunged from around $66,000 to below $63,000 (briefly hitting the low $62,700s) in a four-hour window during thin Asian trading, triggering over $380 million in liquidations in the past 24 hours.
- Traders on X accused large players of a deliberate “algo dump” to exploit thin order books and trigger cascading stops with no direct negative crypto news.
- Investor sentiment crashed to “extreme fear” levels amid persistent ETF outflows and whale selling, with some viewing the move as a leveraged flush to shake out weak hands before a potential rebound.
Bitcoin (BTC) took another sharp hit late Monday into early Tuesday, plunging from around $66,000 to below $63,000 and briefly touching the low $62,700 as market uncertainty hits.
At the time of publishing, BTC was trading near $62,900 with a 24 hour trading volume of $45.66 billion. The four-hour slide erased roughly $60 billion from the total cryptocurrency market capitalization and triggered more than $380 million in liquidations in the past 24 hours, as per Coinglass data.
The steep drop unfolded during thin Asian trading hours with no major negative headline tied directly to crypto. Traders on X quickly pointed fingers at coordinated “algo dumps,” accusing large players or exchanges of exploiting thin order books to trigger cascading stops.
Algo dump and political uncertainty theories
Bull Theory, a crypto news and research handle on X, shared that nearly $60 billion was erased from the crypto market in four hours with no negative news or event. “This is pure Algo dump from some entity,” they said.
Mainstream reports, however, tied the weakness to broader pressures like renewed uncertainty over President Donald Trump’s tariff policies and the escalating tension between the U.S. and Iran, meanwhile a slide in investor sentiment to “extreme fear” levels not seen in months.
While some market participants called the move a classic leveraged flush designed to shake out weak hands before any rebound, others warned of deeper support tests near $60,000 if selling momentum persists.
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