Why is Crypto Down? $480M in Liquidations and BTC Under $65k
Crypto Fear Index Hits 8: Why Whales Are Buying the $60K Dip
Bitcoin and Ethereum are enduring their most brutal annual open on record, with BTC USD shedding nearly -32% year-to-date (YTD) as it crashed below $65,000 overnight.
However, it has since reclaimed the level and is sitting at $65,600. This continued bearish price action has investors wondering why crypto is down on this Monday market open.
The Ethereum price is in a similar position to Bitcoin, down -31% YTD and trading at around $1,950 as it struggles to reclaim the $2,000 psychological resistance level.
Over $480M in crypto liquidations have occurred in the past 24 hours as retail continues to capitulate, and the most recent crash has the Fear & Greed index at 5/100, marking ‘Extreme Fear’. These are levels not seen since the historic COVID crash in March 2020, and as a retail trader who was also around during the COVID period, I can attest to the current level of panic.
Why is Crypto Down While Stocks and Gold are up?
The current downturn marks a sharp decoupling from traditional finance. While the S&P500 sits just below new all-time highs and gold is rallying back above $5,000, the crypto sector is suffering alone right now.
The Fear and Greed Index plummeted to a reading of 5/100 on this Monday morning trading session, a level of “Extreme Fear” historically associated with major cyclical bottoms rather than infinite falls.
Despite the gloom, data indicate significant Whale Accumulation is occurring behind the scenes, coupled with continued institutional purchases from the likes of Michael Saylor’s Strategy and BlackRock, a $14 trillion asset manager.
With institutional giants pushing the “Crypto Winter” narrative, panicked retail hands are surrendering coins at huge losses. As whales quietly scoop up BTC, the divergence between plummeting price action and rising whale wallet activity volume suggests a classic redistribution phase is underway.
Bitcoin Price: Market Data and Technical Analysis
As the Bitcoin price fell below $65,000 overnight, the looming threat of a flush to under $60,000 remains the primary bear case, aligning with Standard Chartered’s $50,000 BTC USD price prediction for 2026.
If the $65,000 is breached again, it could unleash a fresh cascade of liquidations across the board, potentially pushing ETH USD toward $1,800.
However, oversold RSI levels are screaming ‘Buy the Dip’ to unpanicked traders. With a fresh wave of leverage wiped out during the overnight $480M flush, the market lacks the speculative froth usually present before a deeper capitulation.
Technical indicators suggest that the “pain trade” might soon switch to the upside, trapping late bears who are betting on a drop to $50,000.
Is a Reversal Imminent: Even the Experts Can’t Agree
Traders must now watch two conflicting signals: ongoing founder sell-offs and macro resilience. Ethereum co-founder Vitalik Buterin recently offloaded over $18M in ETH, a move that historically precedes short-term volatility.
Conversely, even experts are seemingly at odds:Arthur Hayes warns of macro pressure that could lead to further downside, as BitMine’s Tom Lee insists “we’re really close to the end” of the bleeding.
Right now, the key pivot zone lies at $68,500; a reclaim of this level invalidates the short-term bearish momentum and creates a pathway toward $70,000.
Until then, the market remains in a precarious accumulation zone where patience is the only hedge against volatility.
EXPLORE: Best Crypto Meme Coins to buy in 2026
Drop CoinNews a Follow on X and Telegram for all of the Latest Crypto Market Updates and Professional Market Analysis.
