Crypto selloff pushes Bitcoin near $65K as $940M liquidated and flows rotate into AI and IPOs

Bitcoin was trading near $65,000 after a sharp retracement, with intraday losses of roughly 2.4% as momentum rotated toward AI equities and major IPOs, leaving the coin in a described 'precarious' position ^{[1] [2]}.

Derivatives markets experienced acute stress: about $940 million was liquidated across exchanges in 24 hours, affecting approximately 185,298 traders and with four out of five liquidations hitting long positions; Ethereum liquidations outpaced Bitcoin's during the move. Santiment analysts also said the decline accelerated after MicroStrategy and Michael Saylor sold 32 BTC, while on-chain metrics point to medium-term recovery potential despite elevated fear ^{[2] [3]}.

Market veterans framed the selloff as a loss of investor enthusiasm: Bitwise CIO Matt Hougan called the market 'brutal' and said crypto has become a contrarian investment amid substantial year-to-date declines in major tokens. SBI Holdings CEO Yoshitaka Kitao linked potential XRP upside to Ripple's expanded Washington efforts and the proposed CLARITY Act, and Bloomberg host Joe Weisenthal warned the industry may be in an especially severe 'crypto winter' ^{[4] [5] [6]}.

The market remained under pressure as large liquidations and cooling institutional sentiment weighed on prices; observers pointed to regulatory outcomes and broader capital rotation as the key developments to monitor ^{[2] [4] [5]}.