TLDR
Bitcoin (BTC) has dropped toward the low 60,000s, triggering one of 2026s largest waves of forced liquidations in leveraged crypto positions.
- BTC slid to about 61,000 to 63,000, coinciding with roughly 1.6 to 1.8 billion dollars in 24 hour liquidations, mostly from long positions.
- Heavy leverage, persistent spot Bitcoin ETF outflows and some high profile BTC sales amplified the move and flipped market sentiment to extreme fear.
- Leverage is now being flushed out, but further volatility is likely as traders watch support near 60,000 and ongoing ETF flows and funding data.
Deep Dive
1. Size Of The Drop And Liquidations
Multiple reports show Bitcoin falling from the high 60,000s to just above 61,000, a multi month low, dragging most altcoins lower with it. CryptoPotato cites about 1.61 billion dollars in liquidations in 24 hours, with around 1.35 billion dollars from longs and over 735 million dollars in BTC longs alone. Other outlets describe similar events, with Coinpedia highlighting roughly 1.7 billion dollars in total liquidations as BTC dropped to around 66,000 earlier in the move.
On a market wide basis, BTC specific liquidations over the past 24 hours are around 700 million dollars, within a seven day total above 2.19 billion dollars, according to derivatives liquidation data.
The selloff was not a normal spot move but a large deleveraging event where over leveraged long traders were forced out.
2. Key Drivers Behind The Flush
Several bearish forces hit at once. Analysts point to a run of spot Bitcoin ETF outflows, with one report noting 11 consecutive sessions and billions of dollars withdrawn from ETFs, contributing to selling pressure and weaker demand for BTC. Coinpedia also flags renewed Mt. Gox linked wallet activity and the first small sale of BTC by Strategy (formerly MicroStrategy) since 2022 as symbols that shook confidence.
Geopolitical tension around Iran and risk off behavior in broader markets added to the risk aversion backdrop, while funding data and liquidation skew show traders had been heavily positioned for upside before prices rolled over. The Crypto Fear and Greed Index has slid into extreme fear, aligning with this risk off regime.
Structural selling (ETF outflows and treasury adjustments) met an over leveraged derivatives market, so once price broke support, forced selling fed on itself.
3. What To Watch Next
Derivatives open interest in perpetuals is down about 7 to 8 percent over 24 hours, indicating some leverage has already been cleared. Total crypto market cap is down about 5 percent in the same window, while BTC dominance is roughly flat near 58 percent, suggesting broad risk off rather than a simple rotation into altcoins.
Traders are now focused on whether BTC can hold the 60,000 to 61,000 area that several analysts identify as a key technical and psychological zone, and on whether ETF flows stabilize after the recent streak of outflows. Funding rates and further clusters of large liquidations will indicate if leverage is still being reset or starting to build again.
If ETF outflows slow and leverage stays lower, the market can base more easily, but continued outflows or another wave of aggressive longs could set up more sharp liquidations.
Conclusion
Bitcoins plunge and the 1.6 to 1.8 billion dollar liquidation spike reflect a classic leverage washout on top of weakening institutional demand. The immediate impact is painful for over leveraged longs, but the reduction in open interest and extreme fear sentiment can eventually create a cleaner backdrop, provided ETF outflows and macro stress do not intensify further.
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