Bitcoin plunges below $62K as $1.5B in crypto longs get…

Bitcoin crashed below $62,000 during Hong Kong trading hours, triggering more than $1.5 billion in leveraged crypto liquidations in a single 24-hour window. Over 208,000 traders were forcibly liquidated across crypto markets, with Bitcoin alone accounting for more than $800 million in losses and Ether another $386 million, according to CoinGlass data.

Why it matters

The sell-off isn't just a crypto-native event — analysts at Presto Research argue it reflects a broader capital rotation. Bitcoin's major drawdowns this year have repeatedly coincided with rallies in gold and AI stocks, as investors scale back expectations for Federal Reserve rate cuts. That framing shifts the recovery thesis away from on-chain catalysts and toward macro variables: easing inflation data and a renewed appetite for liquidity-sensitive assets are now the key triggers to watch. Meanwhile, 13 consecutive days of net outflows from U.S. spot Bitcoin ETFs — totalling roughly $1 billion this week alone — confirm that institutional demand is not providing a floor at current levels.

Market impact

Bitcoin is now down more than 14% on the week and 21% over the past four weeks, touching its lowest level since February. The liquidation cascade has driven 30-day implied volatility to its highest point since early April, and demand for protective options is rising. Until the macro backdrop shifts — specifically on Fed rate-cut expectations — the structural bid that drove BTC to cycle highs looks materially weakened.