Bitcoin falls below $64,000 as derivatives liquidation flush deepens

Bitcoin fell below $64,000 on Aug. 10, dropping $1,500 within minutes after rejection at $65,200, as a derivatives liquidation flush spread across major crypto assets.

Peter Schiff, the economist and longtime gold advocate, used the slide to urge investors to sell, saying Strategy's fourth Bitcoin sale of the year showed lenders lack confidence in the token as collateral.

Bitcoin traded at $65,003.57 at 7:30 a.m. ET before sliding below $64,000, down 45.5 percent from a year earlier, according to Fortune data. Ethereum fell under $1,900, with the daily Bollinger midpoint at $1,897 and liquidation clusters near $1,950 and $1,895, per crypto.news and CoinGlass. The flush followed a rejection at $65,200 earlier in the session, with the asset dropping by roughly $1,500 within minutes.

Gold, by contrast, rebounded from $4,000 per ounce support and gained 8 percent in a week as China and other central banks accumulated bullion, prompting Schiff to call Bitcoin the "anti-gold." The next support for BTC sits near $63,500, with resistance at $65,800, according to technical analysis.

Strategy, the software company led by Michael Saylor, announced its fourth Bitcoin sale of the year, dumping another 1,690 BTC. Schiff said the move showed the firm had turned to fiat money because "lenders don't have confidence in Bitcoin as collateral."

The liquidation flush extended to Ethereum, which broke beneath $1,900 before stabilizing near $1,917. The 4-hour chart shows the 50- and 100-period moving averages clustered at $1,894, creating a concentrated support area below the current price. A sweep of that zone could trigger further leveraged long liquidations before buyers attempt another recovery.

Bitcoin's market capitalization stands near $1.33 trillion, with Ethereum at roughly $233 billion, according to Fortune. The broader crypto market remains under pressure as traders weigh the impact of the derivatives flush and the divergence between Bitcoin and gold.

For the immediate outlook, a confirmed close above $65,800 would favor a test of higher levels, while losing $63,500 would expose deeper downside. Ethereum faces a similar test, with $1,953 as the key barrier before $2,000 and $1,894 as the critical support.

This article is for informational purposes only and does not constitute investment advice.