BTC tests $60K as liquidations hit $2.7B

TLDR

Bitcoin (BTC) briefly traded near 60,000 dollars as a sharp deleveraging wiped out billions of dollars in leveraged crypto positions.

1. BTC is around 65,000 dollars after a fast drop, with 24 hour losses near 7 percent and multi billion dollar liquidations across crypto.
2. The move is driven by forced unwinding of leveraged longs, heavy ETF outflows, and a broader risk off mood that pushed sentiment to extreme fear.
3. Key things to watch are leverage and ETF flows, plus whether support in the 60,000 to 65,000 dollar zone holds or gives way to another liquidation wave.

Deep Dive

1. Scale Of The Flush

Bitcoin is trading near 65,377.85 dollars, down 7.06 percent over 24 hours and 21.4 percent over seven days, and about 48.19 percent below its all time high. Total crypto market cap fell from about 2.40 trillion dollars to 2.24 trillion dollars in 24 hours, a 6.82 percent drop.

Estimates of liquidations differ by data provider, but they cluster in the low single digit billions. One recap cites roughly $2.06 billion in liquidations, while another reports about $1.42 billion. CoinMarketCaps derivatives metrics show around 1.3 billion dollars in BTC liquidations in 24 hours.

This drop took BTC briefly toward 60,000 dollars before rebounding to the mid 60,000s, erasing a large chunk of gains since late 2024 and pulling most major altcoins down even harder.

2. Why It Happened

Multiple reports describe a classic forced deleveraging. As BTC broke key levels, long futures and perpetual positions were liquidated en masse, turning a normal selloff into a cascade of forced selling. A Coindesk update notes BTC traded near 60,000 dollars in late US hours with the move attributed to both forced liquidations and opportunistic dip buying as fear spiked to FTX era lows at a Fear and Greed reading of 9.

ETF flows amplified the pressure. Recent coverage highlights US spot BTC ETFs seeing about 545 million dollars in net one day outflows, with BlackRocks IBIT responsible for the bulk. Another piece notes BlackRock moving hundreds of millions of dollars in BTC to Coinbase Prime amid the drop, a sign of institutional repositioning rather than fresh inflows.

Macro risk off sentiment also matters. Equities sold off at the same time, and commentary from strategists frames this as a wider liquidity squeeze rather than a BTC specific story.

3. What To Watch Next

Leverage is lower but not gone. Perpetual open interest has fallen about 4.78 percent in 24 hours to roughly 531.51 billion dollars, which is a sizeable flush but still a large speculative overhang. Funding has flipped slightly negative, suggesting longs have been humbled but not fully washed out.

Bitcoin dominance sits near 58 percent, and an altcoin season index still favors Bitcoin, indicating altcoins are higher beta and more vulnerable if another leg down hits. ETF AUM for BTC has slid from about 117.72 billion to 102.57 billion dollars over the past week, so sustained outflows would keep spot demand weak.

Conclusion

BTCs test of the 60,000 dollar area was primarily a leverage and positioning event, with ETF outflows and macro risk aversion acting as accelerants. Whether this becomes a durable bottom or just a pause in a deeper drawdown will depend on how quickly leverage shrinks, how ETF flows evolve, and whether the 60,000 to 65,000 dollar zone can hold under further stress.