Bitcoin (BTC) fell in early Asia trading on Tuesday, erasing all of the gains it mate a day earlier, driven by ongoing profit-taking and continued net outflows from U.S.-listed bitcoin exchange-traded funds (ETFs).

The world’s largest cryptocurrency fell roughly 1% in the past 24 hours to $65,635 by 04:34 am ET (08:34 GMT). BTC has initially dropped as low as $64,000, before reversing some of the sharp losses.

The cryptocurrency has been hovering around its 50-day moving average at $66,000, putting the medium-term uptrend to the test.

Bitcoin pressured as crypto liquidations hit nearly $500mn

Bitcoin has had a relatively quiet weekend, mainly hovering around the $66,000 mark. Monday's trading started slowly but picked up momentum later in the day. However, following an unexpected surge in volatility, the premier crypto asset dropped by over $3,000, hitting its lowest level since May 15.

This sharp volatility negatively impacted over-leveraged traders, with more than 190,000 positions liquidated in the past day, totaling over $480 million. Simultaneously, Bitcoin exchange-traded funds (ETFs) saw net outflows of $145 million, extending last week's poor performance and further dampening bullish sentiment in the market.

Last week, Bitcoin fell below $65,000 for the first time in a month as ETF outflows exceeded $500 million after the Federal Reserve indicated only one interest rate cut for 2024.

According to market analysts, other factors also did nothing to help support Bitcoin's price. For instance, French President Emmanuel Macron unexpectedly called a snap election in the country, a move that strengthened the dollar as traders dumped the euro.