CryptoSlate
Bitcoin fell below $60,000 this week, touching $59,030 before recovering toward $61,650, a more than 50% drawdown from its October record. The decline was driven by spot selling, not futures: CryptoQuant data shows roughly $470 million in BTC sell orders hit Binance within a single minute as price crossed the $60,000 level, with sell orders exceeding $1.2 billion within the following hour. As the move compounded, Coinglass reported approximately $1 billion in derivative positions liquidated across 24 hours, affecting more than 176,000 traders. Longs accounted for roughly $781 million of that total against $211 million in shorts, with $417 million in BTC contracts and $230 million in ETH contracts forcibly closed. The single largest print was a $12 million BTC swap liquidation on Binance.
Why it matters
The macro backdrop has flipped. Earlier in the year, traders had priced multiple Fed cuts for 2026; resilient inflation and Iran-conflict fallout have since repriced the path hard. CryptoQuant's Axel Adler noted the market is no longer hoping for a pivot and is now pricing a higher probability of a Fed rate hike by October. The DXY broke back above 100 to a 13-month peak of 101.5, and rising Treasury yields have lifted the opportunity cost of holding non-yielding assets. For a market that runs on abundant liquidity, that is a structural headwind, not a one-day wobble.
Market impact
Demand is thin at every layer. The 13 US spot Bitcoin ETFs are heading toward a seventh straight week of net outflows, with more than $6 billion pulled over that stretch according to SoSoValue. Glassnode flagged realized losses, ETF redemptions, and a tilt toward defensive options as ongoing weight on price. James Lavish of the Bitcoin Opportunity Fund argued this still looks like a buyer's strike rather than true capitulation, leaving room for a deeper flush. Ethereum slipped to roughly $1,650, and Solana, BNB, Cardano, XRP, Dogecoin, and Hyperliquid all traded firmly negative as risk-off spread through every tier of the market.
Frequently asked questions
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Why did Bitcoin fall below $60,000 this week?
The decline was driven by spot selling, not futures. CryptoQuant data shows roughly $470M in BTC sell orders hit Binance within a single minute as price crossed $60K, with sell orders exceeding $1.2B within the following hour.
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How much was liquidated during the Bitcoin crash?
Coinglass reported approximately $1B in derivative positions liquidated over 24 hours, affecting more than 176,000 traders. Longs accounted for $781M and shorts $211M, with $417M in BTC contracts and $230M in ETH contracts forcibly closed.
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What changed in Fed rate expectations?
Earlier in the year traders had priced multiple Fed cuts for 2026, but resilient inflation and Iran-conflict fallout have repriced that path. CryptoQuant's Axel Adler said the market is now pricing a higher probability of a Fed rate hike by October.
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How are spot Bitcoin ETFs performing?
The 13 US spot Bitcoin ETFs are heading toward a seventh consecutive week of net outflows, with investors withdrawing more than $6B over that period according to SoSoValue.
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Is this the Bitcoin bottom or could it go lower?
James Lavish of the Bitcoin Opportunity Fund argued the current action resembles a buyer's strike rather than true capitulation, suggesting a deeper flush is possible before a durable bottom forms. The DXY breaking above 100 to a 13-month peak adds to the macro headwind.
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