Bitcoin Breaks Below $62,000, Triggering Billions of Dollars in Liquidations as Funds Shift to AI Tokens

Price swings in Bitcoin, the world’s largest cryptocurrency by market capitalization, have long served as a barometer for the digital asset market. Crypto investors often use high leverage to amplify their positions, and liquidations during Asian trading hours can trigger sharp short-term market moves. Understanding such events helps gauge market leverage and near-term speculative activity, drawing heightened attention whenever prices reach key round-number thresholds.

According to the latest data from crypto analytics platform CoinGlass, Bitcoin fell 1.4% on Monday, breaking below $63,000 and touching about $62,800. Analysts attributed the decline mainly to a routine leverage flush during Asian trading hours. CoinGlass data also showed that the liquidations were only one-sixth the size of the worst liquidation wave in the previous 30 days, indicating that overall selling pressure remained moderate.

Bitcoin has retreated steadily since reaching a high of more than $125,000 in October 2025, while ETF and corporate buying in the crypto market has also weakened. Greg Cipolaro, NYDIG’s global head of research, said AI has become the more favored growth theme and is competing with crypto assets for capital. Technology IPOs, concerns about quantum computing and Strategy’s bitcoin sales have also weighed on demand.

Bitcoin fell below $60,000 on June 5, reaching its lowest level since late 2024. NYDIG said on June 7 that there was no single cause for the decline. The cryptocurrency was quoted at about $59,940 on June 28, down 0.6% over 24 hours and nearly 7% for the week. It could extend its decline into the second quarter, which would mark its first back-to-back quarterly losses since 2022.

Leveraged positions had piled up after bitcoin’s earlier sharp decline. When the price reversed sharply higher, exchanges forcibly closed short positions with insufficient margin. Such cascading liquidations not only amplified the near-term rally but also highlighted elevated leverage and liquidity risks in the crypto market.

Bitcoin subsequently rebounded from its low and broke above $63,700. CoinGlass data showed $504 million in short liquidations over the 24 hours through the time of reporting, the highest since late April. Total market liquidations reached about $655 million, affecting more than 100,000 traders.

Bitcoin came under pressure this week from record outflows from spot ETFs and Strategy’s first sale of the cryptocurrency since 2022. A strong U.S. nonfarm payrolls report on June 5 prompted markets to bet on a Federal Reserve interest-rate increase by the end of 2026. The two-year U.S. Treasury yield rose to 4.16%, while a stronger dollar sparked a selloff in risk assets.

In early Asian trading on Saturday, June 6, Bitcoin rebounded by more than $1,500 from an overnight low of $59,227 to return to around $61,000. CoinGlass data showed that about 308,000 traders had $1.6 billion in positions liquidated over 24 hours, including $1.21 billion in long positions. Bitcoin and Ether liquidations totaled $534 million and $423 million, respectively.

Bitcoin's latest decline was triggered by an escalation in the war involving Iran, new U.S. government tariff policies and a stronger yen, with risk assets coming under pressure across the board. The cryptocurrency market has lost about $2 trillion in value, reflecting a marked retreat in capital and liquidity. The $60,000 level is both a technical support zone and a key psychological threshold, making it central to whether the selloff deepens.

Bitcoin recently fell below $65,025, initially triggering more than $430 million in long liquidations. As the price moved closer to $60,000, long liquidations swelled to more than $600 million. Crypto liquidations across the market exceeded $1.1 billion at one point over 24 hours, affecting nearly 200,000 traders. Traders had estimated a 53% chance that Bitcoin would fall below $66,000 by April 24, while the market also saw about $1 billion in put-option bets at the $60,000 level.

Bitcoin and AI chips are both highly volatile risk assets, and shifts in capital allocation often link the two markets. Strategy, formerly MicroStrategy, has long bet its balance sheet on Bitcoin. The company and its co-founder Michael Saylor have become key gauges of institutional crypto exposure and financing risk.

Bitcoin fell as low as $61,400 on June 4, 2026, losing about 7% in 24 hours and 13% over the week. Saylor attributed the decline to capital rotating into AI. Broadcom shares plunged about 15% the same day after the company maintained, but did not raise, its forecast for more than $100 billion in fiscal 2027 AI chip revenue, dragging other chip stocks lower.

Bitcoin is the largest cryptocurrency by market capitalization, and sharp price declines often force exchanges to liquidate highly leveraged positions, with the impact spreading to tokens such as Ether. After BTC fell below $69,000, the market is also watching whether its 200-week moving average will hold. If that support breaks, analysts’ downside target of $50,000 could come into focus.

Bitcoin fell about 6% in a single day over the weekend, briefly approaching $68,000. In the latest 24-hour period cited as of July 20, 2026, crypto liquidations across the market neared $400 million, including about $300 million in bullish long positions. Although a golden cross on the daily chart could provide near-term support, a recovery above $69,000 remains crucial.

Crypto derivatives amplify gains and losses through leverage. When prices fall below margin thresholds, exchanges forcibly close positions, potentially creating cascading liquidations that deepen the decline. In late May 2026, escalating conflict between the United States and Iran weighed on risk appetite and pulled Bitcoin back from its highs. The $70,000 level became a key battleground for bulls and bears because of its significance as both a round-number threshold and market support.

On May 28, Bitcoin fell 4.5% from the previous day’s high of $76,050 and touched a six-week low of $72,620 on Bitstamp. CoinGlass recorded $935.6 million in liquidations across leveraged long and short positions over 24 hours. The price fell again to $69,631 on June 2, marking a two-month low, as market liquidations approached $800 million. Trader Ardi warned that the next support level was around $68,700.

Bitcoin has historically shared the Nasdaq technology sector’s appetite for risk, but it has recently weakened even as technology stocks hit record highs. Stalled cryptocurrency legislation in the U.S. Congress has dimmed expectations for policy support. Meanwhile, miners are redirecting power and data-center resources to AI computing, prompting the market to reassess the outlook for the mining industry.

As of July 20, 2026, Bitcoin had fallen below $75,000, sharply decoupling from the rally in U.S. technology stocks. Recent reports said pro-crypto legislation remained stuck in Congress. Miners are also reallocating capital and computing capacity amid the AI boom, cooling investors’ risk appetite and sustaining selling pressure across the crypto market.

Bitcoin has recently decoupled from U.S. equities, fueling concerns that each rebound is peaking at a lower level. As Bitcoin fell below $67,000, major tokens including Ether and Solana also came under selling pressure. By contrast, Nvidia’s earnings strengthened the outlook for artificial-intelligence investment, prompting funds to rotate into AI-linked tokens such as Internet Computer and Bittensor.

In the latest trading, Bitcoin lost the $67,000 level while Ether and Solana also declined. Decred surged against the broader trend after changes to its treasury-spending rules. Following Nvidia’s better-than-expected quarterly results and strong outlook, Internet Computer, Bittensor and shares of Bitcoin miners with AI data-center exposure advanced, highlighting the rotation in capital.