Bitcoin, Ether Lead $1B Liquidation Losses as AI Trade Persists

Bitcoin and Ether led a wave of liquidation losses exceeding $1 billion as the artificial intelligence trade continued to draw capital away from cryptocurrencies, according to market data.

The sell-off intensified as traders unwound leveraged positions, with bitcoin falling below key support levels and ether dropping sharply. The liquidation cascade, concentrated in long positions, reflected a broader risk-off mood driven by persistent AI-related equity outperformance. Meanwhile, Brent crude oil slid below $72.48 a barrel, erasing all gains since the US-Iran conflict began, as tankers resumed passage through the Strait of Hormuz and supply flooded the market. Cheaper oil eases inflation pressure that had pushed the Federal Reserve toward a hawkish stance, and a sustained decline could eventually shift the rate outlook that has weighed on bitcoin throughout the month. However, the transmission from lower oil to softer inflation to a less hawkish Fed operates with a lag of months, not days, making the oil move a tailwind in the making rather than an immediate catalyst. For crypto traders, the ongoing AI trade rotation and macro headwinds underscore the importance of monitoring real-time price action on NowPrice's live crypto dashboard to track bitcoin and ether movements amid heightened volatility.

Looking ahead, traders will watch for further oil price developments and any shift in Fed rhetoric. A sustained drop in crude could gradually improve risk sentiment, but near-term crypto prices remain vulnerable to continued AI-driven equity flows and potential further liquidation cascades. Key levels to monitor include bitcoin's support around $60,000 and ether's ability to hold above $3,000.