Bitcoin dropped below $64,000 on Friday after climbing to nearly $67,000 mid-week, triggering $87 million in bitcoin liquidations and $312 million in total crypto liquidations. The sell-off occurred after the cryptocurrency reached $65,705 by 3:15 a.m. EST Friday, then tumbled to an intraday low of $63,666, wiping out more than $2,000 in value within seven hours. The price decline coincided with renewed legislative momentum for the CLARITY Act, as the National Fraternal Order of Police dropped its opposition to the bill and three major digital asset trade groups urged Senate leadership to advance the legislation.
Bitcoin Drops from $65,705 to $63,666 in Seven-Hour Sell-Off
Market data shows bitcoin rose steadily from just over $64,800 Thursday afternoon to $65,705 by 3:15 a.m. EST on Friday. A sell-off immediately afterward sent the cryptocurrency tumbling to an intraday low of $63,666, wiping out more than $2,000 in just over seven hours. A brief relief rally pulled bitcoin back above $64,000, leaving it down roughly 1% on the day. The reversal occurred as global crude oil prices retreated, with Brent crude dropping below $100 a barrel after hitting two-month highs on July 23.
Liquidations Reach $87 Million in Bitcoin Positions
The price decline triggered $87 million in bitcoin liquidations, with $70 million in long positions and $17 million in short positions wiped out. Across the broader crypto market, $312 million in leveraged positions were liquidated, with long bets accounting for $242 million of the total. The dip lowered bitcoin's market capitalization from $1.3 trillion to $1.285 trillion, dragging the broader crypto market cap down to approximately $2.28 trillion.
National Fraternal Order of Police Withdraws Opposition to CLARITY Act
Legislative momentum behind the CLARITY Act picked up significantly after the National Fraternal Order of Police dropped its opposition to the bill. In a formal letter to the Senate Banking Committee, the law enforcement organization confirmed it is now satisfied with the safeguards built into the revised proposal, removing a primary obstacle to the legislation's progress. Three leading U.S. digital asset trade groups—the Blockchain Association, the Crypto Council for Innovation, and The Digital Chamber—sent a joint letter urging Senate leadership to bring the CLARITY Act to the floor. The coalition emphasized that the bill establishes the first comprehensive federal consumer protection framework, grants the CFTC explicit oversight of digital commodity spot markets, and mandates strict safeguards including customer asset segregation, minimum capital requirements, and standardized disclosure rules.
Analyst Highlights 30-Year Treasury Yield as Key Volatility Driver
Dean Chen, an analyst at Bitunix, wrote in a market update that the key level now being monitored is around 5.25% on the 30-year Treasury yield. Chen stated that a sustained move above this level could create additional pressure on equity valuations and broader financial conditions. Chen noted that broader liquidity conditions, energy market fluctuations, and shifting Federal Reserve interest rate expectations will remain the primary drivers of volatility across crypto and other risk assets.
FAQ
What triggered the $87 million in bitcoin liquidations on Friday?
Bitcoin's drop from $65,705 by 3:15 a.m. EST Friday to an intraday low of $63,666 triggered $87 million in bitcoin liquidations, with $70 million in long positions and $17 million in short positions wiped out.
Why did the National Fraternal Order of Police withdraw opposition to the CLARITY Act?
The National Fraternal Order of Police confirmed in a formal letter to the Senate Banking Committee that it is now satisfied with the safeguards built into the revised CLARITY Act proposal, removing a primary obstacle to the legislation's progress.
What key level is being monitored for treasury yields according to Bitunix analyst Dean Chen?
Dean Chen stated that the key level now being monitored is around 5.25% on the 30-year Treasury yield, noting that a sustained move above this level could create additional pressure on equity valuations and broader financial conditions.
