Bitcoin Slumps to $65K as Leverage Liquidations and Stablecoin Liquidity Drain Accelerate

Bitcoin has extended a week-long selloff, falling from $81,000 to just below $65,000 as of Saturday. The latest move came over the weekend, a period that has typically lacked major price swings absent a broad shock. Analyst Ted Pillows attributed the drop to forced selling driven by excessive leverage rather than large whale exits. He cited no evidence of single selloffs above $50 million and no large deposits to exchanges. Wallets linked to Erik Voorhees were buying the dip, accumulating almost $100 million of ETH over four days while ETH fell to $1,820. Pillows said $200 million was liquidated in one hour as BTC slipped below $66,000, with total liquidations topping $500 million on Saturday. Long positions accounted for 94% of the total. The pattern echoes the marketwide collapse of October 2025, he said. Separately, analyst Crypto Rover flagged a sharp contraction in stablecoin liquidity. Onchain data showed almost $9 billion, or roughly 4.86%, was wiped from stablecoin market capitalization during the latest decline, when BTC fell 23.92%. By comparison, stablecoin market cap fell 3.70% in May 2026 when BTC dropped 30.11%, and slipped 1.92% in January 2026 when BTC fell 38.42%. Crypto Rover described the latest stablecoin drawdown as the largest of 2026 and said liquidity is leaving crypto rapidly.