The reasons why bitcoin fell to its lowest level in a week

Bitcoin fell to the lowest level in a week when a renewal of risk aversion in global financial markets led to liquidations of bullish bets on the cryptocurrency.

(Read more: How bitcoin reaches the 'halving', given the reconquest of its price)

The original digital asset fell as much as 7.5% to $65,214, the lowest price since April 5. Smaller tokens like Solana and Dogecoin plummeted furtherfalling around 12% and 13%, respectively.

The global financial world was rocked on Friday by a resurgence in geopolitical risks that sent stocks tumbling, while spurring a flight to safer corners of the market such as bonds and the dollar.

Oil recovered. Traders looking to benefit from the recent rally saw around $417 million in long settlements of derivatives positions in the last hour, according to data from Coinglass.

(See: Sam Bankman-Fried, the 'crypto wunderkind', sentenced to 25 years in prison)

Liquidation in the last four and 12 hours was $663.9 million and $751 million in long positions, respectively. Total settlements were $847.6 million.

The sudden drop occurred due to rising Bitcoin prices, partly driven by the Bitcoin halving, a code update that has been perceived as a positive catalyst for the market as it will reduce the supply of the digital asset. . Bitcoin is still up around 60% this year.

(See: 'Fintech' CryptoMKT launches campaign to encourage crypto adoption in Colombia)

BLOOMBERG