Bitcoin (BTC) Plunges to $59K as $1.6B Liquidation Event Rocks Crypto Markets

Key Highlights

• BTC plummeted to $59,100, marking its lowest level in 2026, before staging a recovery past $60,000
• Crypto markets experienced a devastating $1.6 billion liquidation cascade, primarily affecting leveraged long positions
• Robust US employment figures diminished expectations for Federal Reserve interest rate reductions, pressuring risk-on assets
• On-chain analyst Ali Charts reports 10.46 million BTC now underwater — a metric historically signaling market capitulation
• Strategy offloaded Bitcoin holdings for the first time in two years, creating additional market anxiety

Bitcoin experienced a sharp decline on Friday, plunging to $59,100 — its weakest level this year — before market participants stepped in to defend the psychological $60,000 threshold. By Saturday, BTC had stabilized around $60,702, representing a modest 1% daily decline.

The catalyst for the downturn came from surprisingly robust US labor market statistics. May’s nonfarm payrolls revealed 172,000 new jobs, substantially exceeding the anticipated 85,000. Additionally, April’s figures received an upward revision of 64,000 positions. This economic resilience diminished market expectations for Federal Reserve monetary easing, triggering a surge in Treasury yields and dollar strength while punishing risk-sensitive assets.

The tech-heavy Nasdaq 100 tumbled approximately 5%, marking its sharpest single-day decline since April 2025. The S&P 500 retreated 2.6%. Digital assets were swept up in the broader risk-off sentiment.

Massive $1.6 Billion Liquidation Cascade

Intense selling pressure throughout cryptocurrency markets resulted in rapid liquidation of overleveraged positions. According to CoinGlass analytics, approximately $1.6 billion worth of positions were forcibly closed within a 24-hour window, with bullish bets absorbing the majority of losses. Bitcoin alone contributed over $500 million to this liquidation total, while Ethereum accounted for more than $400 million.

Altcoins suffered similarly brutal corrections. Ethereum has shed over 20% across the past seven days. Solana, XRP, Dogecoin, and BNB all recorded double-digit percentage losses during the same timeframe.

Market participant Daan Crypto Trades observed on X that Bitcoin had completely retraced its spring rally. “Really was a case of stairs up elevator down,” he commented.

On-chain analyst Ali Charts highlighted a crucial blockchain metric. His analysis reveals that 10.46 million BTC currently sit underwater — a threshold that has historically coincided with significant market troughs.

“Selling pressure often begins to fade as fewer investors are willing to realize losses, increasing the probability of a market bottom forming,” he explained on X.

Strategy Breaks Two-Year Buying Streak

Compounding market anxiety, Strategy revealed it had liquidated a portion of its Bitcoin treasury for the first time since 2022. While the sale represented only a fraction of the company’s substantial holdings, it sparked speculation about potential additional selling from one of cryptocurrency’s most prominent institutional accumulator.

US-based spot Bitcoin exchange-traded funds have registered consecutive weeks of capital outflows, eliminating a crucial demand pillar that had underpinned price action during earlier months.

Market observers are closely monitoring the $60,000 threshold for signs of support or breakdown. Analyst Exitpump observed that funding rates were drifting toward negative territory, interpreting this as “early signs of seller exhaustion.”

As of Saturday afternoon, Bitcoin was trading at $60,702.