Bitcoin plunged to the $60,000 zone on June 3-4, hitting intraday lows between $60,000 and $61,500 as leveraged traders were wiped out for $1.76 billion in a single 24-hour stretch. The figure covers liquidations across the entire crypto derivatives market, with the pain concentrated in long positions.
A major catalyst: sustained outflows from spot Bitcoin ETFs. Institutional capital that had been flowing into these products reversed course, adding significant downward pressure. Rising inflation and geopolitical tensions also contributed, creating a risk-off environment that leveraged traders were not positioned for.
Ethereum also faced hundreds of millions in liquidations, underscoring this was a systemic flush.
CoinGlass reported a similar liquidation event in February 2026, when Bitcoin retested this same $60,000 level during a prior correction. Market sentiment has now deteriorated into “extreme fear.” Prediction markets reflect elevated probabilities of Bitcoin dropping below $60,000 throughout June.
The heavily long-biased liquidations tell their own story: the market was overwhelmingly positioned for higher prices heading into the move.
Persistent ETF outflows add a layer of concern. Spot Bitcoin ETFs were supposed to bring stabilizing institutional capital, but instead, those same institutions are pulling capital during stress periods, amplifying moves as the ETF redemption process requires selling actual Bitcoin on spot markets.
If Bitcoin does not hold $60,000, traders should watch for another wave of cascading liquidations that could push prices into the mid-$50K range, where the next meaningful cluster of technical support sits.