Bitcoin briefly drops below $62,000 as $1.5 billion in crypto longs get wiped out
Bitcoin fell below $62,000 in Asia trading, triggering $1.5 billion in crypto liquidations. U.S. spot bitcoin ETFs also saw about $1 billion in outflows this week.
Intelligence analysis by GPT-5.4 Mini
Bitcoin's slide below $62,000 set off a liquidation cascade across leveraged crypto positions, with bitcoin and ether taking the biggest hits. The move came as U.S. spot bitcoin ETFs kept bleeding assets and Presto Research pointed to weaker Fed-cut expectations and competition from gold and AI stocks.
Bitcoin slipped under a big price line, and many traders who borrowed money had to sell fast, like too many people crowding out of one door at once. That made the fall worse, and some money also left bitcoin investment funds.
Analysis
Liquidations hit hard
Bitcoin briefly fell below $62,000 on Thursday morning in Hong Kong trading, and that move triggered a fast liquidation wave across crypto markets. According to CoinGlass data cited in the article, more than 208,000 traders were liquidated in the past 24 hours, with total forced selling exceeding $1.5 billion.
Bitcoin accounted for more than $800 million of those losses, while ether made up another $386 million. The scale matters because liquidations are not just a price move; they are forced exits from leveraged positions that can amplify the downside once selling starts.
Institutional demand stayed weak
The article points to continued weakness in institutional demand as another pressure point. SoSoValue data showed roughly $1 billion in net outflows from U.S. spot bitcoin ETFs this week, extending a record streak of withdrawals.
Presto Research argued that bitcoin's drawdown may be less about a single crypto-specific event and more about competition for investor capital. The firm said bitcoin's major declines this year have lined up with rallies in gold and artificial intelligence stocks, while investors have scaled back expectations for Federal Reserve rate cuts.
What the setup implies
If that read is correct, bitcoin's next rebound may depend less on internal crypto narratives and more on broader macro conditions. Easing inflation concerns and a renewed appetite for liquidity-sensitive assets would likely help. Until then, ETF outflows and leveraged positioning leave the market vulnerable to more sharp swings.
Key points
- Bitcoin briefly dropped below $62,000 in Asia trading.
- More than $1.5 billion in leveraged crypto positions were liquidated in 24 hours.
- Bitcoin liquidations totaled over $800 million, and ether liquidations totaled $386 million.
- U.S. spot bitcoin ETFs saw about $1 billion in net outflows this week.
- Presto Research said bitcoin has struggled as investors rotate toward gold and AI stocks.
If inflation worries cool and investors move back into assets that benefit from easier money conditions, bitcoin could rebound. A return of demand for U.S. spot bitcoin ETFs would also help steady the market after this liquidation wave.
If ETF outflows continue, bitcoin may stay under pressure even without a fresh crypto-specific shock. Crowded leveraged positions could also keep turning normal dips into sharper selloffs whenever price weakens.
