QCP: Bitcoin's drop below $65,000 triggered long liquidation, accelerating risk reduction by mining companies, but selling pressure has moderated.

A recent analysis by QCP Group indicates that Bitcoin's early morning drop below $65,000 triggered approximately $230 million in long liquidation. The market is under pressure as it digests new tariff risks and broader geopolitical uncertainty. US President Trump's move to raise global tariffs from 10% to 15% further exacerbated the cooling of macro risk appetite. With Bitcoin's price still significantly below average mining costs, mining companies are facing pressure, prioritizing liquidity over hoarding strategies. Bitdeer's liquidation of its Bitcoin reserves is the latest signal of miners diversifying their risk-averse strategies and partially shifting towards AI. However, the market is not entirely bearish. This round of liquidation has been significantly milder than earlier this year, with the market reacting more restrainedly to news. While the options market is still pricing in downside risk, showing a cleaner position structure, ETF fund flows appear more like basis trading liquidation rather than a complete withdrawal, reflecting an adjustment in the funding structure rather than a complete market exit.