Bitcoin plunge sparks $1.5B long liquidations

TLDR

Bitcoins latest drop triggered around $1.5 billion of forced liquidations on leveraged long positions, exposing how crowded bullish bets had become in derivatives.

1. Multiple data providers report roughly $1.5 to $1.8 billion of crypto liquidations in 24 hours, with about $1.5 billion from longs and Bitcoin alone near $750 to $800 million.
2. The flush was driven by sustained spot Bitcoin ETF outflows, a symbolic treasury sale, rising geopolitical risk, and capital rotation into AI and tech equities rather than a single isolated shock.
3. Leverage and open interest have started to reset, but key supports around 60 thousand remain in focus, with future ETF flows and macro headlines likely to decide whether this becomes a bottoming phase or a deeper slide.

Deep Dive

1. Size And Shape Of The Liquidations

Several analyses put total crypto liquidations in the last day around $1.5 to $1.8 billion, with about $1.5 billion coming from forced closure of long positions as prices fell below the mid 60 thousand area. A TradingView summary citing CoinGlass data reported that Bitcoin alone saw about $774 million of long liquidations, part of an event described as one of 2026s largest since Februarys selloff when BTC briefly fell below 60 thousand.

Other coverage notes similar magnitudes, with one report citing $1.61 billion total liquidations and $1.35 billion from longs, and another putting digital asset liquidations at about $1.5 billion over 24 hours, reinforcing that the headline figure sits in this general range. Together, these sources indicate a classic long squeeze where over leveraged bullish traders bore most of the damage rather than shorts.

2. Key Drivers Behind The Selloff

Several overlapping factors show up across reports as drivers of the plunge. Multiple outlets highlight persistent net outflows from spot Bitcoin ETFs, with estimates of roughly $3 to $4 billion withdrawn over 10 to 12 trading sessions, weakening one of the main demand pillars for BTC. One detailed breakdown ties the latest drop to ongoing ETF outflows, a spike in exchange inflows, and whales and short term holders cutting exposure as their entries above 80 thousand went underwater.

A second theme is symbolism. Strategy, the major listed Bitcoin treasury vehicle, sold 32 BTC for the first time in years to fund dividends. The sale is tiny relative to its holdings, but breaking a never sell narrative has been widely cited as a psychological blow rather than a mechanical one.

Macro and risk sentiment also matter. Several pieces point to escalating US Iran tensions, safe haven flows into assets like gold, and a rush of capital into AI and mega cap tech plays, including large equity raises and anticipated IPOs, as reasons why risk capital has rotated away from Bitcoin. This aligns with the broader data showing total crypto market cap down about 5 percent over 24 hours while major stock indices hold near highs.

3. Leverage Reset And What To Watch

Leverage metrics indicate the system is in the middle of a reset rather than fully cleansed yet. Aggregate perpetuals open interest has fallen about 7 percent in 24 hours, and global derivatives open interest is down a similar amount, signaling that some speculative fuel has been burned off but not entirely. Meanwhile, a widely watched fear and greed gauge is deep in fear territory, consistent with articles noting extreme fear readings around 11 out of 100.

Analysts quoted across several reports converge on a few key levels. Many flag the 60 thousand zone as a critical support, with intermediate areas around 65 to 66 thousand where buyers may attempt to stabilize price. Others warn that if ETF outflows continue and geopolitical stress remains elevated, a move toward the mid 50 thousand region is possible before any durable recovery. At the same time, some on chain and technical commentators argue that the combination of top buyer capitulation, heavy liquidations and extreme fear often appears late in bear phases and can precede medium term bottoms, though they stop short of calling an exact low.

Conclusion

Bitcoins sharp plunge and roughly $1.5 billion in long liquidations reflect a crowded, leveraged long market colliding with weakening ETF demand, symbolic selling and a risk off macro backdrop. The immediate impact is a painful flush for bullish traders, but the medium term path hinges on whether ETF flows stabilize, geopolitical risks ease and key support zones attract real spot demand, turning this from a cascading selloff into the start of a healthier, less leveraged market phase.