Bitcoin falls below $67,000. What is the market actually saying?

Bitcoin once again fell below the psychological $67,000 level, immediately bringing tension back to the market. Within 24 hours, the price dropped by more than 3 percent, while Ethereum also slipped below $2,000. XRP and BNB followed the move downward.

But this decline is not just “crypto volatility.” There is a broader macro backdrop behind it.

What caused the drop?

The main driver is a shift in expectations regarding U.S. monetary policy. The market interpreted the nomination of Kevin Warsh as Federal Reserve Chair as a signal of a more hawkish stance on interest rates.

Investors are beginning to price in a scenario with fewer rate cuts and tighter liquidity. When money moves more slowly through the system, risk assets tend to react first. The crypto market is no exception.

At the moment, many traders are watching the $60,000 to $65,000 zone as a potential support area. If macro pressure intensifies, that is where the market’s resilience may be tested.

What do derivatives data show?

This is where the picture becomes more interesting.

Data from the futures market and other derivatives indicate that a large portion of excessively leveraged positions has already been flushed out. In simple terms, many traders who were using high leverage have either been liquidated or have reduced their exposure.

This matters because it suggests the market has “deleveraged” part of the speculative pressure. When excessive leverage disappears, the probability of another chain reaction of liquidations decreases.

What are institutions doing?

Spot Bitcoin ETFs continue to attract capital, with more than $166 million in net inflows on Tuesday. Ethereum ETFs also posted positive, though more modest, results.

At the same time, large institutional players appear cautious. Many are waiting for a clearer signal, either in the form of sustained ETF inflows or a decisive shift in the macro environment.