CoinDesk
Bitcoin slid to $59,175 overnight, its lowest point since early June, before recovering toward $61,500 by Thursday morning per CoinDesk data. The move triggered nearly $1 billion in futures liquidations across crypto majors from bitcoin and ether to solana, plus tokenized equity products tracking Micron and Sandisk. Roughly $430 million of that was long liquidations on BTC-tracked futures as automated deleveraging accelerated the drop.
Why it matters
No single catalyst explains the move. Bitcoin has shed about 10% since Monday's peak near $65,500, pulled lower by a hawkish Fed, six straight weeks of spot ETF outflows, thinning summer liquidity, and a quarter-end options expiry on June 30 that traders say is keeping positioning fragile. Wintermute had flagged $59,000 as the bear-market low to watch in its Tuesday note, and that level held on the first test.
The bounce came from outside crypto entirely. Micron's after-close earnings shattered analyst estimates, lifting the memory chip complex and pulling risk assets back with it. SK Hynix separately disclosed plans for a roughly $29 billion U.S. listing, one of the largest offerings ever, while Samsung and Kioxia rallied across Asia.
Market impact
The same AI memory trade that sent the Kospi down 10% on Monday on fears the spending boom was stalling is now the structural bid under crypto. Micron's read: demand for AI memory is durable, not speculative, and that is what is steadying tokenized chip exposure into the close.
The week's live risk is still ahead. CoinGlass data shows $1.6 billion in leveraged long positions clustered below $58,000, meaning a break there would accelerate the unwind. Thursday's PCE inflation print, the Fed's preferred price gauge, is the next data point that can move the tape in either direction.
Frequently asked questions
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Why did Bitcoin drop to $59,000 overnight?
Bitcoin slid to $59,175 overnight, its lowest since early June, on a combination of a hawkish Fed, six straight weeks of spot BTC ETF outflows, thinning summer liquidity, and a quarter-end options expiry on June 30. Roughly $430 million in BTC long liquidations accelerated the move.
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How much in total liquidations did the move trigger?
Nearly $1 billion in futures positions were liquidated across crypto majors including bitcoin, ether, and solana, plus tokenized equity products tracking Micron and Sandisk. About $430 million of that was BTC long liquidations specifically.
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What caused Bitcoin to bounce back above $61,000?
The bounce came from outside crypto. Micron Technology reported quarterly earnings after the close that beat analyst estimates, lifting the broader memory chip complex. SK Hynix also disclosed plans for a roughly $29 billion U.S. listing, one of the largest offerings ever.
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What is the AI trade and why does it matter for crypto?
The AI trade refers to investor positioning around AI infrastructure, especially memory chips from Micron, SK Hynix, and Samsung. The same trade that sent the Kospi down 10% on Monday on fears the spending boom was stalling is now steadying crypto, with Micron's results confirming AI memory demand is structural.
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What is the next major catalyst to watch?
Thursday's PCE inflation print, the Fed's preferred price gauge, is the next data point that could move the market. Additionally, CoinGlass data shows $1.6 billion in leveraged long positions clustered below $58,000, so a break there could accelerate the downside.
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