Bitcoin Slips Below $61,500 as Liquidations Top $1.1B
Cryptocurrencies sold off sharply Wednesday, with Bitcoin dropping more than $2,000 in less than an hour. The largest token briefly touched $61,460 before rebounding above $64,000. The move pushed Bitcoin below $63,000 for the first time since Feb. 24 and sparked more than $1.1 billion in liquidations of leveraged positions across the market over the past 24 hours.
Ether fell more on a percentage basis, sliding to about $1,732 as traders moved quickly to reduce risk. The decline wiped out billions in market value and ranked among the most volatile sessions of 2026.
Institutional flows added pressure. Abraxas Capital, a crypto investment firm, reportedly sold 2,469 Bitcoin worth roughly $166 million in the past 24 hours at an average price of $67,210. Onchain tracker Hupzy said the firm sent 1,469 Bitcoin to Kraken and withdrew $22.7 million in USDC. The sales came as the market was already weakening, adding supply at a sensitive moment.
Separately, wallets linked to Mt. Gox transferred 116.3 Bitcoin, valued at about $8.16 million, to Bitstamp, according to Lookonchain. While the amount is small relative to daily volumes, Mt. Gox-related movements tend to draw attention given lingering concerns about potential creditor selling.
Analysts were split on what the drop signals. Peter Schiff said Bitcoin found temporary support near $61,000 and bounced more than $2,000 from the lows, but questioned whether the rebound has enough conviction to hold. He also argued that a downturn in tech stocks could weigh further on Bitcoin while gold could benefit as a safe-haven.
Crypto analyst Wendy O pointed to prior cycles, noting Bitcoin has weathered deeper drawdowns before, including a decline from above $5,000 to near $3,000. Benjamin Cowen offered a more constructive medium-term view, saying capital could rotate back into Bitcoin once enthusiasm around major traditional-market IPOs fades and investors look for the next opportunity.
Bitcoin has recovered off the session low, but rising liquidations, reported institutional selling, and renewed fear have kept sentiment fragile heading into the next trading day.
