Bitcoin crash triggers $1.26B crypto liquidations

TLDR

Bitcoin (BTC) dropped toward 58,000 dollars, triggering roughly 1.26 billion dollars in forced liquidations across crypto derivatives within 24 hours.

1. Bitcoin fell from above 61,800 dollars to about 58,000 dollars, with CoinGlass estimating around 1.26 billion dollars liquidated across about 209,000 traders.
2. A hotter US PCE inflation reading and more than 1.3 billion dollars of spot Bitcoin ETF outflows helped drive a risk off move that amplified the crash and liquidations.
3. Derivatives data show elevated open interest, extreme fear, and large options expiry around 60,000 dollars, making the 58,000 to 55,000 dollar zone critical for near term direction.

Deep Dive

1. Crash And Liquidations

Reports show Bitcoin slipping from above 61,800 dollars to roughly 58,000 dollars, its lowest level since late 2024, with about 1.26 billion dollars in leveraged positions liquidated across around 209,000 traders in a day, based on CoinGlass estimates, as highlighted in Bitcoin dropped to about 58,000 dollars.

More than 450 million dollars of BTC long positions were reportedly wiped out in roughly one hour, indicating that most of the damage came in a fast liquidation cascade rather than a slow grind. Similar spikes in forced liquidations had already appeared earlier in June, suggesting leverage had been building and repeatedly flushed.

These liquidation totals are dashboard estimates that update in real time, but multiple independent reports cluster in the 1.1 to 1.3 billion dollar range, which is enough size to move prices in relatively thin conditions.

2. Macro And ETF Pressure

The immediate trigger was macro. The US May PCE inflation gauge printed about 4.1 percent year over year, with core at 3.4 percent, higher than prior readings and weakening the case for near term Federal Reserve rate cuts, as covered in hotter PCE inflation and 1.26 billion dollars in liquidations.

Equities, especially high growth tech, sold off alongside Bitcoin, reinforcing the pattern that BTC trades like a high beta risk asset when rate expectations shift. At the same time, US spot Bitcoin ETFs reportedly saw about 1.3 billion dollars of net withdrawals in the week, with leading funds such as BlackRocks product posting large outflows, according to US spot Bitcoin ETFs saw about 1.3 billion dollars of withdrawals.

That combination of macro shock plus ETF redemptions meant fewer institutional buyers stepped in to absorb selling, unlike earlier buy the dip episodes, so liquidation-driven moves could run further.

3. Positioning And Key Levels

Derivatives positioning remains central. Options and futures data show billions of dollars in Bitcoin downside hedges and about 10.5 billion dollars in Bitcoin, Ether, XRP and Solana options expiring around current levels, per about 10.5 billion dollars in Bitcoin, Ether, XRP and Solana options expiring.

Open interest in perpetual futures sits near 417.66 billion dollars, up about 7 percent over 24 hours, while tradable futures open interest dropped roughly 35 percent, indicating some leverage was flushed but speculative exposure is still sizeable. Sentiment gauges such as the Fear and Greed Index are in Extreme Fear, and many options strikes cluster near 60,000 and 55,000 dollars, with some traders now treating deeper drops as a base case.

Conclusion

This move is less about a single crypto-specific event and more about a macro shock that hit a heavily leveraged market lacking its usual ETF dip buyers.

If macro data or ETF flows stabilize and forced liquidations ease, the same derivatives structure that magnified the crash could allow for sharp rebounds. If inflation data or outflows worsen, breaks below current support levels could trigger another round of liquidation-driven volatility.