Bitcoin (BTC), $800 Million Long Position Liquidation Fear...How Far Will It Fall?

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As Bitcoin (BTC) broke below $60,000 and fell to a 20-month low, extreme fear and forced liquidation fear are simultaneously spreading across the cryptocurrency market.

According to crypto media outlet Benzinga on June 24 (local time), Bitcoin fell below $60,000 for the first time since October 24. Trading volume in the past 24 hours surged by 40%. The drop from its all-time high exceeded 51%.

Ethereum (ETH) fell to $1,550 during the day before paring some of its losses. XRP and Dogecoin (DOGE) also showed weakness. According to Coinglass data, approximately $1 billion was liquidated in the cryptocurrency market in the past 24 hours. Of this, the liquidation amount for long positions alone was confirmed to be $800 million.

Bitcoin's open interest also increased in the past 24 hours. A simultaneous decline in spot price and an increase in open interest is interpreted as a sign of increased new short position entries. The Crypto Fear & Greed Index has returned to the extreme fear zone seen at the beginning of this month.

The stock market also added to the burden. The S&P 500 index closed down 0.10% at 7,358.22, and the Nasdaq Composite index finished trading down 0.43% at 25,476.6. The Dow Jones Industrial Average closed up 182.06 points, or 0.35%, at 51,848.90. The market is closely watching the release of the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge.

Cryptocurrency analyst Rekt Capital warned that if Bitcoin records a daily close below the red zone near $60,000 and subsequently shows a bearish retest, further declines could be confirmed. On-chain analytics firm CryptoQuant stated that the break below $60,000 triggered “a new wave of fear” for some investors, and the movement of Bitcoin back to exchanges is increasing short-term selling pressure. CryptoQuant explained, “The $60,000 zone has become a true battlefield where the clash between weak hands and strong hands is most intense.”

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*