Bitcoin (BTC) slipped below the $60,000 psychological threshold on June 26, pressured by a wave of forced liquidations and renewed inflation concerns that have dampened risk appetite across digital asset markets. The leading cryptocurrency traded near $59,800 at the time of writing, after briefly touching $58,500 before recovering some ground.
Massive Liquidation Cascade
According to CoinGlass, over 217,700 traders were liquidated in the past 24 hours, with total losses reaching approximately $1.5 billion. Long positions accounted for roughly $1.2 billion of those losses, while short traders lost about $270 million. Bitcoin alone recorded around $665 million in liquidations, followed by Ethereum with $359 million and XRP with about $50.5 million.
The liquidation cascade accelerated after Bitcoin broke below key support levels, forcing leveraged long positions to unwind rapidly and consuming available liquidity on futures exchanges. The resulting selling pressure pushed BTC to its lowest levels in weeks.
Inflation Data and Macro Headwinds
Fresh U.S. economic data has reinforced expectations that the Federal Reserve may delay interest rate cuts or even consider additional tightening. The Personal Consumption Expenditures (PCE) inflation index accelerated to 4.1% in May, according to The Kobeissi Letter, which also linked weakness across financial markets to rising artificial intelligence infrastructure costs.
Higher-for-longer interest rates typically weigh on speculative assets like cryptocurrencies, as investors gravitate toward yield-bearing instruments. This dynamic has contributed to persistent selling pressure on Bitcoin and other digital assets.
Speculative Demand and Institutional Flows
CryptoQuant reported a sharp decline in speculative demand, with its Short Term Holder Realised Price Year on Year Momentum falling from approximately negative 2.4% in mid-March to roughly negative 24%. This indicates that recent buyers are entering the market at significantly lower prices than a year ago. Analyst Zizcrypto noted that the indicator has not yet shown signs of a sustained recovery in short-term holder conviction, though it remains above levels seen during previous bear market resets.
Institutional demand has also weakened. Spot Bitcoin ETFs have recorded net outflows exceeding 40,000 BTC (worth roughly $3 billion) over several weeks, reducing one of the market's largest sources of spot buying. Meanwhile, capital has continued flowing into U.S. technology stocks as investors favor companies benefiting from the artificial intelligence boom.
$10 Billion Options Expiry Adds Pressure
Adding to the bearish backdrop, nearly $10 billion in Bitcoin options on Deribit are scheduled to expire on June 26, representing about 37% of the exchange's total open interest. Much of that positioning consists of bullish call options with strike prices well above current market levels. As Bitcoin traded steadily lower throughout June, many of those contracts moved out of the money, prompting hedge adjustments by market makers that have increased spot selling pressure.
Technical Indicators Remain Bearish
On the daily chart, Bitcoin remains below its 20-day, 50-day, 100-day, and 200-day exponential moving averages (EMAs). The 20-day EMA sits near $63,800 and acts as the first major resistance. The moving average alignment continues to favor sellers, while the daily Relative Strength Index (RSI) has recovered slightly to around 31 after reaching oversold conditions but remains below the neutral 50 level.
The 4-hour chart shows Bitcoin trading below the middle Keltner Channel, currently near $61,200, with the channel sloping downward. The 4-hour RSI has rebounded to around 37 from oversold territory but has yet to reclaim the 50 level that would indicate stronger buying momentum.
For context, other assets like gold has also slipped below $4,110 as rising yields counter safe-haven demand, while silver broke above $60 on dollar weakness. In the crypto space, Bitcoin Cash is tracking Bitcoin's moves with key support and resistance levels in focus.
Outlook
Bitcoin's ability to reclaim and hold above $60,000 will be critical for short-term sentiment. Failure to do so could lead to further downside, with the next major support level near $58,000. The liquidation heatmap from CoinGlass shows a significant concentration of leveraged positions just above $60,000, suggesting that any recovery could face resistance from sellers looking to exit.
This article is for informational purposes only and does not constitute financial advice.
