Bitcoin Slides Toward $65,000, Its Lowest Since August, as a 14% Weekly Drop Tests Crypto Holders' Nerves

Bitcoin kept falling on Saturday, sliding to around $65,000 for the first time since August and extending a weekly drop of roughly 14%, according to market reports ^[4][2]. The world's largest cryptocurrency touched an intraday low just above $65,000, its weakest level since August, Investing.com reported ^[1].

The slide extends a selloff that pushed bitcoin below $70,000 on Friday for the first time since August, CoinDesk reported ^[5], and it shows the selling did not stop at that milestone.

Forced Selling Feeds the Drop

A big part of the move is mechanical. Traders who borrowed money to bet on higher prices were forced out as prices fell. About $1 billion in leveraged crypto positions was liquidated over 24 hours, according to CoinGlass data cited by Trending Topics ^[4]. The crypto outlet CryptoTimes put the liquidations at about $1.26 billion as bets on rising prices were wiped out ^[3].

When a leveraged position is liquidated, the exchange sells the holder's coins automatically to cover the loan. In a falling market, those forced sales push prices lower still, which triggers more liquidations. That chain reaction is why bitcoin's drops so often come fast.

Money Leaving the Funds

The exchange-traded funds that brought bitcoin into ordinary brokerage and retirement accounts are also seeing steady withdrawals. U.S. spot bitcoin ETFs recorded about $185 million in net outflows on Friday, and roughly $1.9 billion has left them over seven straight trading sessions, Investing.com reported ^[1].

Those funds were supposed to bring steadier, long-term buyers into the market. When they turn into steady sellers, it removes one of the main supports that lifted prices earlier in the year.

The Fed Factor

The broader backdrop is the same one weighing on Wall Street: the growing expectation that the Federal Reserve will raise interest rates rather than cut them. CryptoTimes reported that rising bets on a Fed rate hike were adding to the pressure on bitcoin ^[3].

Higher rates hit speculative assets in a simple way. When a savings account or a Treasury bond pays more, investors have less reason to hold an asset that pays no interest and swings sharply from week to week. A stronger case for safe yield is a weaker case for speculation.

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Is the Bottom In?

No one knows, and anyone who claims to is guessing. The market research site 24/7 Wall St. warned that bitcoin's history suggests the worst of a selloff like this may not be over ^[2]. Past cycles have included both sharp rebounds and long, grinding declines, and the $65,000 level is now the line many traders are watching.

Washington Won't Ride to the Rescue Soon

Policy is unlikely to help in the near term. The CLARITY Act, the market-structure bill meant to spell out which regulators oversee digital assets, failed a 49-50 Senate procedural vote in September and is effectively tabled until January, when the new Democratic-led Congress can start over, Forbes reported ^[6]. Until the rules are settled, big institutions that want clear guidance may stay cautious.

What Ordinary Holders Should Keep in Mind

For Americans who own a little bitcoin, whether directly or through a fund in a retirement account, a few common-sense points apply. Volatility is the nature of this asset, and sharp weekly swings are part of its history. Money you will need soon for rent, tuition or retirement income does not belong in something that can lose a seventh of its value in a week. Leverage magnifies losses as well as gains, and this weekend's liquidations show how quickly borrowed bets can be erased ^[3][4].

Prudence is an old virtue, and it applies to new kinds of money as much as old ones. Know what you own, know why you own it, and never risk more than you can afford to lose.

Liberty Bell Report will keep watching the crypto market, the ETF flows and the Fed as the selloff plays out.