CoinDesk
Bitcoin plunged below $62,000 in Hong Kong trading on Thursday, triggering more than $1.5 billion in leveraged crypto liquidations over 24 hours — the steepest single-day forced unwind in months. 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 drop marks BTC's lowest level since February, putting the asset down more than 14% on the week and 21% over the past four weeks. Thirty-day implied volatility has climbed to its highest level since early April as demand for protective options plays spiked, with 13 straight days of outflows from US-listed spot bitcoin ETFs underscoring persistent institutional de-risking.
Why it matters
The framing from Presto Research, circulated in a Thursday note, recasts the move as a macro rotation rather than a crypto-specific catalyst. Bitcoin's major drawdowns this year have coincided with rallies in gold and artificial-intelligence equities — a pattern Presto attributes to investors scaling back Federal Reserve rate-cut expectations and reallocating toward assets less sensitive to the liquidity outlook.
If that read is correct, a BTC rebound depends less on crypto-native catalysts and more on easing inflation concerns and a renewed shift back toward liquidity-sensitive assets. The implication is that the traditional "wait for the Fed to pivot" playbook may be the right framework again — but the competition for capital is stiffer than in prior cycles, with AI equities absorbing flows that might historically have rotated into bitcoin.
Market impact
Institutional demand has visibly thinned. US spot bitcoin ETFs have seen roughly $1 billion in net outflows this week alone, according to SoSoValue data, extending the funds' record streak of withdrawals. Spot ether ETFs are tracking a parallel outflow pattern, compounding the pressure on ETH, which absorbed $386 million of the 24-hour liquidation cascade.
The 30-day implied-volatility print, now at its highest since early April, points to a market bracing for further downside rather than positioning for a snap-back.
Frequently asked questions
-
Why did bitcoin drop below $62,000?
Bitcoin fell below $62,000 in Hong Kong trading on Thursday, triggering more than $1.5 billion in leveraged crypto liquidations over 24 hours. More than 208,000 traders were forcibly deleveraged, with BTC accounting for $800M of the losses and ETH $386M.
-
How much have US spot bitcoin ETFs lost this week?
US spot bitcoin ETFs have seen roughly $1 billion in net outflows this week alone, according to SoSoValue data, extending the funds' record streak of withdrawals. The selling has now stretched to 13 consecutive days.
-
What is Presto Research saying about the sell-off?
Presto Research argued in a Thursday note that bitcoin's weakness reflects competition from gold and AI stocks rather than any crypto-specific catalyst. They note BTC's major drawdowns this year have coincided with rallies in those assets as investors scaled back Fed rate-cut expectations.
-
What would it take for bitcoin to recover?
Per Presto's framing, a BTC rebound depends less on crypto-native catalysts and more on easing inflation concerns and a renewed shift toward liquidity-sensitive assets. A dovish Fed pivot or a cooling in AI-equity momentum would likely be prerequisites, not a crypto-specific trigger.
-
How volatile is the crypto market right now?
BTC 30-day implied volatility has climbed to its highest level since early April as demand for protective options plays spiked. With 208,000+ accounts forcibly deleveraged in a single day, the market is bracing for further downside rather than positioning for a snap-back.
Crypto News
WuBlockchain
CoinTelegraph
Crypto Rank News
CryptoSlate
Lookonchain
TheBlock