BTC hits 20-month low amid $1B liquidations

TLDR

Bitcoin (BTC) has dropped to around 59,000 dollars, the lowest level in roughly 20 months, alongside a large wave of forced derivatives liquidations.

1. BTC briefly fell below 60,000 dollars, about 50 percent off its October 2025 high, with reports of nearly 1 billion dollars in crypto liquidations within 24 hours.
2. The move is driven by ETF outflows, macro rate worries, rotation into AI stocks, and a heavily leveraged derivatives market facing a large options expiry.
3. The 58,000 to 60,000 dollar band is now a key battleground, with more forced selling possible if it breaks, while sentiment has slid into extreme fear.

Deep Dive

1. Scale Of The Drop

Yahoo Finance reports BTC fell below 60,000 dollars for the first time since October 2024, marking a roughly 20 month low and more than 51 percent drawdown from its October 2025 peak near 126,000 dollars as volumes jumped 40 percent in 24 hours (article).

CryptoBriefing notes that over 1 billion dollars of crypto positions were liquidated in 24 hours as BTC fell to about 59,175 dollars, impacting roughly 178,000 traders and dominated by long-side liquidations (over 1 billion dollars of crypto positions were liquidated). Other coverage shows a single 5 percent drop to 59,018 dollars triggered about 503 million dollars in leveraged liquidations, with longs making up 486 million dollars (drop to 59,018 dollars triggered about 503 million dollars in leveraged liquidations).

Sentiment has slid into "Extreme Fear", with the Crypto Fear & Greed Index in the low teens, matching reports of panic selling and heavy BTC inflows to exchanges near the 60,000 dollar level.

2. Drivers Behind The Selloff

Several pieces point to sustained spot ETF outflows as a key structural headwind. One analysis cites about 6.4 billion dollars in net US spot BTC ETF redemptions in May alone, directly forcing issuers to sell underlying BTC (about 6.4 billion dollars in net outflows during May). Another daily wrap highlights a single day with 469 million dollars of ETF outflows, led by BlackRock's IBIT with 239 million dollars exiting (ETF outflows of around 469 million dollars in a single day).

Macro conditions are also hostile. Fed expectations have shifted toward at least one rate hike later this year, with traders focused on upcoming core PCE inflation prints and a stronger dollar, both of which typically pressure risk assets. At the same time, capital is rotating into AI-related equities and IPOs, which CNBC and others flag as drawing flows away from BTC.

On top of this, derivatives positioning is heavy. Forbes and options-focused reports emphasize a roughly 10 billion dollar BTC options expiry with large put and call walls around 60,000 dollars, meaning spot moves around that level can trigger nonlinear hedging flows and "cascade" price action.

3. Levels And Signals To Watch

Market structure commentary now treats 59,000 to 60,000 dollars as a critical support band. Bitcoin.com warns that a sustained break below 59,000 dollars, and especially below 58,000 dollars, could put more than 1.6 billion dollars of long leveraged positions at risk, potentially triggering another liquidation wave (warns that a break below 58,000 dollars could wipe out another 1.6 billion dollars in longs).

At the same time, derivatives open interest in perpetuals remains high on a 24 hour view, so there is still fuel for further squeezes in either direction. Analysts are watching three main signals: 1) whether ETF outflows slow or reverse, 2) upcoming inflation and Fed communications, and 3) whether further dips below 60,000 dollars produce fresh liquidations or finally exhaust selling.

Confidence: high because multiple independent news and data sources agree on the price region, liquidation scale, and key drivers.

Conclusion

Bitcoin's slide to a 20 month low has been amplified by crowded leverage and systematic selling from ETF redemptions, all playing out against a hawkish macro backdrop and risk-off rotation into AI.

The 58,000 to 60,000 dollar area is now a focal point where options positioning, liquidation clusters, and sentiment could tip the next move, with further stress possible if ETF outflows persist or macro data disappoints.