Bitcoin surges back above $65000 after $700 million wipeout in Asia whipsaw

In Asia on Friday, Bitcoin rallied sharply after a new wave of selling briefly led the token toward $60,000 to extend ‘a brutal drawdown that has now taken the world’s largest cryptocurrency more than half below its October peak.

As much as 4.C., BTC fell to the level of ? 8% to about $60,033 in late U.S. S. hours before re-taking back to $65,926, after snapping up as high as $$595966, and. That moves come as it triggered the 13% drop of bitcoin’s steepest one-day decline since November 2022, when Sam Bankman-Fried’S ‘FTX’ collapse caused marketwide panic.

The bounce came as liquidations surged again, clearing out leveraged positions that had built up during the week’s decline.

Liquidation tracker CoinGlass said that about $530 million in long positions and $170 million (in shorts) were wiped out over the last four hours of crypto bets, including roughly $700 million for each. But that mix says traders were first crushed on the way down, then caught leaning the wrong way on rebound.

This move also appears to attract spot buyers, with $60,000 as a psychological line that traders have been watching for weeks.

Damien Loh, chief investment officer at Ericsenz Capital, said the rebound points to’strong support’ around that level, but warned sentiment is fragile given the wider market context.

Altcoins mirrored bitcoin’s whipsaw. Solana once fell as high as 14% before erasing those losses completely in hours, shows how quickly risk appetite is changing when liquidity thin and forced selling take over the board of risk eating.

Since a series of liquidations in October rattled confidence, the global crypto market has been shaken by uncertainty and the latest drawback is driven by turbulence in international markets where investors have dumped speculative assets.

This means that the weakness of Bitcoin is now being deposited into crypto-linked balance sheets. Michael Saylor-led firm Strategy reported a $12 per cent increase in the company’s revenue, which is also under way. On Thursday, mark-to-market declines in its bitcoin holdings led to 4 billion fourth-quarter net loss of 4billion — a result of the $4B third-half drop.

Even with Friday’s bounce, traders say the market still looks like one being pushed around by leverage rather than conviction.

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