Bitcoin’s decline to $59,307 triggered a major shakeout in the crypto market, with $1.49 billion in leveraged positions liquidated over the past 24 hours—adding to mounting selling pressure. Market analyst Bob Loukas urged investors to remain calm during this period of volatility, maintaining that the crypto sector remains structurally sound, but warning that the hype-driven expectations of quick profits promoted on social media should be tempered.
Rapid surge in liquidations
According to Loukas, the latest wave of sell-offs marks a natural “final flush” within Bitcoin’s four-year cycle. He notes that investors using high leverage for long positions have taken the hardest hit during this correction.
Data from CoinGlass reveals that in the last 24 hours alone, exchanges automatically closed long Bitcoin positions held by 212,686 investors, totaling $1.19 billion in liquidations. An additional $327.56 million in positions was wiped out in just the past four hours.
The recent pullback is seen as a final cleansing wave in the four-year cycle, especially impacting those who were overexposed to leveraged longs.
Mounting pressure on Strategy analyzed
Many market commentators suggest that Bitcoin’s slump may also be linked to deteriorating sentiment around Strategy (formerly MicroStrategy). The company’s shares, MSTR, have retreated, while its capital instrument STRC dropped to $75, down from its $100 face value. Led by Michael Saylor, Strategy, which holds 847,363 BTC on its balance sheet along with significant debt, appears to have become a target for short-selling funds seeking to drive its stock price lower.
Mini glossary: Strategy is a US-based software company formerly known as MicroStrategy, renowned for holding large amounts of Bitcoin on its balance sheet. MSTR refers to the company’s shares, while STRC denotes the specific capital instrument mentioned, which is tracked at face value.
The recent downturn has also made it more difficult for the company to raise additional capital under similar terms. Analysts at CryptoQuant have recommended that Strategy temporarily pause new Bitcoin purchases to restore balance in its cash reserves.
| Indicator | Level |
|---|---|
| Bitcoin price | $59,307 |
| Total liquidation | $1.49 billion |
| 24-hour long position liquidation | $1.19 billion |
| Additional 4-hour liquidations | $327.56 million |
| STRC price | $75 |
| STRC nominal value | $100 |
Outlook for a long-term bottom
Despite the short-term pressure stemming from these liquidations, Loukas suggests that Bitcoin may have already entered its long-term bottoming window. He points out that such waves of forced position closures are historically common just before a trend reversal.
Loukas projects that it may be too soon to expect a sharp recovery, estimating that the market could remain range-bound for another three to five months as the downturn phase plays out.
Nevertheless, the analyst emphasizes that anticipating a strong price rebound in the near term would be premature. According to his assessment, the market may need to consolidate sideways for another three to five months for the correction phase to fully resolve. The start of the next growth cycle is now expected to materialize closer to fall 2026.
