Bitcoin Drops Below $62K as $1.5B in Crypto Longs Liquidated

Bitcoin briefly plunged below $62,000 on Thursday morning Hong Kong time, triggering a wave of forced selling that wiped out over $1.5 billion in leveraged crypto long positions in the past 24 hours. The sell-off accelerated as more than 208,000 traders were liquidated across crypto markets, with bitcoin accounting for over $800 million of the losses and ether another $386 million, according to CoinGlass data. The cascade was amplified by the market's thin liquidity, as exchange reserves have been steadily declining—a trend that historically exacerbates volatility when large sell orders hit the books. Additionally, the halving cycle, which reduced bitcoin's block reward in April, has raised miner break-even costs, pressuring smaller miners to liquidate holdings during price dips.

The liquidation cascade coincided with persistent weakness in institutional demand. Investors have pulled approximately $1 billion from U.S. spot bitcoin ETFs this week, according to SoSoValue data, extending the funds' record streak of net outflows. This selling pressure from ETF redemptions compounds the forced liquidations, creating a feedback loop that has driven the market's steepest decline in months. Traders can track these price moves in real time on NowPrice's live crypto dashboard. The outflows reflect a broader risk-off mood, with the U.S. dollar index (DXY) strengthening and 10-year Treasury yields rising, which typically reduces appetite for speculative assets like crypto. On-chain data also shows whale concentration increasing, meaning large holders are accumulating while retail sells, a pattern that often precedes a bottom but can also signal further downside if whales start distributing.

Looking ahead, market participants will watch for any stabilization in ETF flows and whether bitcoin can reclaim the $62,000 level as support. The broader risk environment remains fragile, with leveraged positions still elevated relative to historical norms. A sustained recovery would likely require a catalyst such as a shift in macro sentiment or a halt in ETF outflows. Bitcoin dominance, which has been climbing, suggests capital is rotating out of altcoins into bitcoin, but if dominance breaks above key resistance, it could indicate a deeper risk-off shift. Traders should monitor exchange reserve drawdowns and on-chain activity for signs of accumulation versus distribution.