Bitcoin briefly fell below $62,000 early Thursday in Asian trading, the first time it has traded under $63,000 since February, as more than $1.5 billion in leveraged crypto positions were liquidated over 24 hours. CoinGlass data showed over 208,000 traders forced out of the market, with bitcoin accounting for roughly $800 million of the losses and ether another $386 million. The drop caps the steepest crypto decline in months, with bitcoin now down more than 14% on the week and over 50% below its October 2025 peak near $126,000.
A liquidation is the forced closure of a leveraged trading position when a trader can no longer meet the margin requirement, and cascading liquidations can accelerate a price decline as forced sales pile up.
- Bitcoin dipped below $62,000 on June 4, triggering more than $1.5 billion in 24-hour liquidations across crypto markets.
- Over 208,000 traders were wiped out, with bitcoin longs losing about $800 million and ether longs $386 million.
- U.S. spot bitcoin ETFs have shed roughly $1 billion this week across 13 straight days of outflows, the longest streak since 2024.
- Analysts at Presto Research argue bitcoin is losing capital to gold and AI stocks as traders scale back Fed rate-cut bets.
Published: June 4, 2026, 03:30 UTC
What triggered the selloff
The decline was driven less by a single crypto event than by capital leaving the asset entirely. Investors pulled approximately $1 billion from U.S. spot bitcoin ETFs this week, extending the funds’ record streak of net outflows to 13 consecutive trading days, according to SoSoValue data. That sustained institutional exit drained demand at the same time leveraged traders were betting on a rebound.
When bitcoin broke key technical levels around $63,000, those long positions began to unwind in a chain reaction. The $1.5 billion liquidation total marks one of the largest single-day forced-selling events since February, when bitcoin last tested the $60,000 zone. Sentiment on the Crypto Fear & Greed Index slid back into “extreme fear” territory.
Macro pressure compounded the move. Renewed U.S.-Iran tensions added a risk-off tone across global markets, while traders scaled back expectations for Federal Reserve rate cuts amid sticky inflation. The earlier sale of bitcoin by corporate treasury holder Strategy had already dented sentiment before this week’s drop.
The momentum trade is rotating out
Presto Research argued in a Thursday note that bitcoin’s weakness reflects competition for investor capital rather than any crypto-specific catalyst. The firm said bitcoin’s major drawdowns this year have lined up with rallies in gold and artificial-intelligence stocks, as investors reassess how aggressively the Fed will ease.
The thesis is that bitcoin has been trading as a high-beta momentum asset, and that momentum money is now chasing AI equities and gold instead. If that relationship holds, Presto argues, bitcoin’s recovery may depend less on developments inside crypto and more on cooling inflation and a renewed appetite for liquidity-sensitive assets.
What comes next
Traders are watching the $60,000 level as the next major support, a floor that held during February’s lows. A clean break below it could trigger another wave of liquidations, with some analysts pointing to $50,000 as a potential downside target. A sustained recovery, by contrast, likely requires ETF flows to turn positive and the AI-driven capital rotation to ease.
For now, the forced selling has reset leverage across the market, which can stabilize prices once liquidations exhaust themselves. Whether institutional buyers step back in remains the open question, and the growing market for regulated bitcoin derivatives means leverage will stay a central force in how the next move plays out.
Frequently asked questions
Why did bitcoin drop below $62,000?
Bitcoin fell on a combination of roughly $1 billion in weekly spot ETF outflows, more than $1.5 billion in forced liquidations of leveraged long positions, and a broader rotation of capital into gold and AI stocks as traders trimmed Fed rate-cut expectations.
How much was liquidated in the crypto crash?
More than $1.5 billion in leveraged crypto positions were liquidated over 24 hours as of June 4, affecting over 208,000 traders. Bitcoin positions accounted for about $800 million and ether positions roughly $386 million, according to CoinGlass.
What price level are traders watching next?
The $60,000 zone is the key support level, having held during February’s lows. A decisive break below it could spark further liquidations, with some analysts citing $50,000 as a potential floor if selling continues.
