Bitcoin Slides Below $60,000, Sparkling Nearly $870 Million in Crypto Liquidations

Bitcoin's drop back below $60,000 reignited broad selling across digital assets, pushing prices to their weakest levels since October 2024 and weighing on sentiment across the sector, according to CoinMarketCap. Liquidations surged as the selloff accelerated. Bitcoin fell as much as 4.2% intraday. CoinGlass data show 169,531 traders were liquidated in the past 24 hours, with total market liquidations reaching $869.39 million. Long positions absorbed the bulk of the damage: about $785.31 million in longs were wiped out over the same period, suggesting traders positioned for a rebound were forced out after prices broke key levels. Crypto-linked equities also retreated. MicroStrategy (MSTR) slid to its lowest level since February 2024, while several high-volatility, crypto-related assets continued to register fresh local lows. On-chain analytics firm Glassnode cited multiple overlapping headwinds behind the move, including persistent outflows from spot Bitcoin ETFs, investors realizing losses, and a shift toward defensive positioning in options markets. Glassnode added that overall demand remains soft, with limited incremental buying to cushion the decline. Sentiment has turned more cautious. Barstool Sports founder Dave Portnoy wrote on social media that, as the market slides, Bitcoin believers in the long-term thesis need to address growing external skepticism about its value. Macro risks are also in focus. Economist Henrik Zeberg noted that even as Bitcoin broke below $60,000, the U.S. Dollar Index (DXY) was relatively subdued near 101. He warned that further dollar strength could add pressure to risk assets and said markets are not yet positioned for a more aggressive tightening in dollar liquidity. If capital continues rotating back into dollar-denominated assets, crypto volatility may stay elevated in the near term.