Bitcoin Rebounds After Dropping Below $60,000, Over $1.6 Billion Liquidated in a Single Day
0xBroomberg
Bitcoin dipped to $59,227 overnight — its first breach of the $60,000 level in this selloff — then bounced back above $61,000 within hours. Across the market, $1.6 billion in positions were liquidated, driven not by a crypto-native event but by a red-hot U.S. jobs report that reignited rate-hike expectations.
How far did Bitcoin fall, and has it stabilized?
Bitcoin hit a low of $59,227, the first time it broke below the $60,000 round number in this leg down.
Buyers stepped in quickly, pushing the price up more than $1,500 from the low back above $61,000, though it still closed the day down about 1.3%.
This means → the $60,000 line held for now, but if it breaks again on the next test, confidence will face a much harder trial.
What triggered the crash?
A strong U.S. May payrolls report forced an immediate repricing of the Fed's policy path.
Rate-swap markets now fully price in a rate hike by end-2026 — a complete reversal from the rate-cut trajectory expected after new Chair Kevin Warsh took office.
The two-year Treasury yield jumped 12 basis points in a single day to 4.16%; the dollar strengthened; risk assets sold off across the board.
In plain terms = jobs too strong → the Fed may raise rates, not cut them → borrowing gets more expensive → every high-risk asset drops together.
How bad was the damage in equities?
The Nasdaq 100 fell about 5% in one session, its worst single-day drop since April 2025.
The Philadelphia Semiconductor Index plunged 10%, with AI-linked stocks hit hardest.
The S&P 500 dropped 2.6%, snapping a nine-week winning streak.
This reflects a broader pattern: rate-hike expectations punish high-valuation tech stocks the most, and crypto's selloff was not an isolated event.
$1.6 billion liquidated — who got hurt the worst?
Roughly 308,000 traders were forcibly liquidated over 24 hours, totaling about $1.6 billion — of which $1.21 billion were long positions.
Bitcoin accounted for $534 million in liquidations; Ethereum for $423 million.
Zcash — a privacy-focused cryptocurrency — cratered 44% after a disclosure vulnerability in its Orchard shielded pool, adding another $115 million in liquidations.
In plain terms = the vast majority of those blown up were betting on prices going higher — and got caught on the wrong side.
How did other tokens perform?
Ethereum fell 21.6% over seven days to roughly $1,575; Solana dropped 23.7% to about $63.
XRP, Dogecoin, and BNB each declined between 13% and 20%.
Hyperliquid's native token HYPE, which had been relatively resilient, also slid 9.9% over the same period.
This means → no token was spared; this was a systemic flush, not a single-coin problem.
What should you watch next?
Bitcoin was already under structural pressure before this drop: ETF funds posted record consecutive net outflows, and Strategy sold Bitcoin for the first time since 2022.
This means → the two most reliable sources of buying support both flipped to selling at the same time, weakening the floor beneath the price.
The $60,000 level was breached and quickly reclaimed this time, but whether it holds on the next test will determine if Bitcoin slides back into the price range seen during the February correction.
Content is for reference only, not financial advice.