Bitcoin fell below the $62,000 mark on Thursday morning Hong Kong time, leading to one of the sharpest declines in recent months. Over $1.5 billion in leveraged positions were liquidated in the cryptocurrency market within 24 hours, accelerating forced selling and intensifying downward pressure on prices.
Major liquidations hit bitcoin and ether
According to data from CoinGlass, more than 208,000 investors saw their positions liquidated across cryptocurrency markets. The majority of losses, over $800 million, stemmed from bitcoin positions, while ether-related liquidations totaled $386 million.
Mini glossary: Liquidation occurs when a leveraged position is automatically closed by the exchange due to insufficient collateral. CoinGlass is a data platform monitoring liquidation, open interest, and derivatives activity in crypto markets.
CoinGlass data showed that over 208,000 investors were liquidated in the past 24 hours, with losses exceeding $1.5 billion, predominantly in bitcoin and ether positions.
The steep reversal in the market exacerbated selling pressure for highly leveraged trades. As prices slipped, cascading liquidations deepened the downward movement.
ETF outflows signal waning institutional appetite
The wave of liquidations coincided with ongoing softness in institutional demand. According to SoSoValue, investors have withdrawn roughly $1 billion from US spot bitcoin ETFs this week, marking a new milestone in consecutive net outflows from these funds.
US spot bitcoin ETFs are investment products that directly track the price of bitcoin and trade on traditional exchanges. Capital outflows from these vehicles are closely watched as indicators of institutional and traditional investor sentiment toward bitcoin.
Presto Research noted that bitcoin’s weakness likely reflects growing competition for investor capital rather than solely crypto-specific reasons.
Markets eye rates and alternative assets
In an analysis released Thursday, Presto Research highlighted that major pullbacks in bitcoin this year have coincided with rallies in gold and artificial intelligence stocks. The firm cited shifting expectations on US Federal Reserve rate cuts as a key catalyst.
The research note suggested that if this relationship persists, any rebound in bitcoin could depend more on broad macroeconomic conditions than crypto market-specific developments. Easing concerns about inflation and renewed interest in liquidity-sensitive assets may play a decisive role, the firm added.
Recent price action has underscored that short-term market direction in crypto is influenced by a wider set of factors beyond just industry events. ETF flows, rate expectations, and investors’ interest in alternative assets have all emerged as significant drivers of pressure on bitcoin prices.
