TLDR
Bitcoin plunged to around 61,000 USD, clearing roughly 1.61.8 billion USD of leveraged positions across crypto in one of 2026s largest deleveraging events.
- Bitcoin dropped to a four month low near 61,000 USD and triggered about 1.61.8 billion USD in liquidations, mostly long positions in BTC and ETH.
- The move combined excessive leverage with sustained spot Bitcoin ETF outflows and institutional selling, turning a pullback into a liquidation cascade.
- Leverage and sentiment have reset toward extreme fear, but downside risk remains if ETF outflows and exchange inflows stay high around the 60,000 USD region.
Deep Dive
1. Scale Of The Liquidations
Reports show Bitcoin fell from above 67,000 USD to near 61,000 USD, its lowest level in about four months, with more than 270,000 traders liquidated and roughly 1.6 billion USD in positions wiped out in 24 hours.Bitcoin Crashes to 4-Month Low as $1.6 Billion in Crypto Positions Get Wiped Out
Other analyses put the figure slightly higher, around 1.731.76 billion USD in liquidations, with more than 1.5 billion USD hitting long positions.Bitcoin crashed and flushed leverage out
BTC took the biggest hit, but large liquidations also hit Ethereum and major altcoins, contributing to a crypto wide flush rather than a BTC only event.
2. Drivers Behind The Plunge
Derivatives data show elevated open interest and previously positive funding, meaning many traders were aggressively long before the drop; once price fell through key levels, forced selling accelerated the move in a feedback loop.Bitcoin experienced a sharp decline starting June 2, 2026
At the same time, US spot Bitcoin ETFs have recorded a multi week streak of net outflows totaling roughly 34 billion USD, forcing continuous spot selling into already fragile sentiment.Bitcoin fell below $64,000 on June 4, 2026
On the macro side, risk off conditions and geopolitical tensions have pushed investors toward safer assets, so leverage was unwound into a backdrop of weak spot demand rather than dip buying.
3. Leverage Reset And What To Watch
Aggregate perpetuals open interest has fallen a few percent over the last day and more over recent weeks, and average funding has moved sharply lower, consistent with a leverage clear out in derivatives.
Sentiment has swung to extreme fear, with a crypto Fear & Greed reading in the teens, while total crypto market cap is only slightly lower day on day, suggesting much of the damage has been done in prior sessions.
Key variables now are whether spot Bitcoin ETF outflows slow, exchange BTC inflows ease, and the 60,00061,000 USD area holds as support; failure on any of these could invite another wave of selling.
For traders, this looks like a classic deleveraging phase where risk shifts from sudden liquidation spikes to slower grind risk tied to ETF flows, macro data, and how spot buyers behave near support.
Conclusion
Bitcoins plunge and the 1.6 billion USD plus liquidation cascade were driven less by a single headline and more by crowded leverage meeting persistent ETF outflows and weak spot demand.
Leverage and sentiment have reset, which often precedes more stable conditions, but the markets next phase hinges on whether institutional outflows and exchange inflows cool around the 60,000 USD zone or extend the downtrend.
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