February 24, 2026

Bitcoin dips below $65K, triggers $500M in crypto liquidations

How Layer 2 Impacts On-Chain Fees and Congestion

Bitcoin’s recent drop below $65,000 has led to over $500 million in liquidations within the cryptocurrency market, highlighting the asset’s volatility amid current macroeconomic uncertainties. The price fell from $67,600 to $64,435 in less than two hours, resulting in liquidations primarily of Bitcoin and Ethereum positions. This significant selloff is attributed to policy uncertainty following the U.S. Supreme Court’s ruling against President Trump’s reciprocal tariffs, coupled with rising geopolitical tensions in the Middle East, which have affected risk assets broadly. Analysts indicate that cryptocurrencies are increasingly viewed as high-volatility investments, making them particularly sensitive to these overarching economic factors.

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