In today’s crypto news, Bitcoin has fallen below $63,000 after trading above $65,500 just hours earlier. While continued ETF outflows and institutional selling have contributed to weaker market sentiment, market data suggests the selloff has been driven primarily by a massive long liquidation event.
Long Liquidations Trigger Market-Wide Selloff
Bitcoin’s latest decline appears to be a textbook example of a long squeeze. After failing to hold above a key resistance level near $65,550, the asset began sliding lower before accelerating sharply toward the $62,000 support zone. At the time of writing, Bitcoin was trading around $62,100.
According to CoinGlass data, more than $227 million in crypto positions were liquidated within just four hours. Long traders accounted for $219.41 million of those losses, while short liquidations totaled only $8.13 million. In other words, more than 96% of all liquidations during the period came from bullish traders who had bet on higher prices.
The liquidation pressure was spread across multiple exchanges. Binance recorded the largest liquidation volume at $74.16 million, followed by Hyperliquid at $63.79 million. Bybit saw $22.63 million liquidated, while Gate.io and Bitget recorded $21.76 million and $14.82 million respectively. Several exchanges reported that more than 96% of liquidated positions were longs, highlighting just how heavily traders were positioned for further upside before the market reversed.
The broader picture tells a similar story. Over the past 24 hours, total liquidations reached $528.06 million, including $411.94 million in long positions. Such events often create a self-reinforcing cycle. As prices fall, leveraged positions are automatically closed, forcing additional selling into the market and pushing prices even lower. These conditions, in turn, create a rapid cascade that can cause sharp price movements within a relatively short period.
ETF Outflows and Institutional Selling Add Pressure
While liquidations are the primary catalyst behind Bitcoin’s drop, institutional flows have offered little support. Spot Bitcoin ETFs recorded net outflows of $68.3 million yesterday. Although that figure represents a significant improvement from the larger withdrawals seen earlier this month, investors remain cautious.
Notably, BlackRock clients reportedly sold approximately $172 million worth of Bitcoin exposure yesterday, making it one of the largest individual contributors to the day’s outflows.
Traders are now closely monitoring the $62,000 support zone visible on short-term charts. If buyers successfully defend the level, Bitcoin could attempt another move toward the $65,550 resistance area. However, a decisive break below support may trigger another round of liquidations and increase downside pressure.
For now, the evidence suggests that today’s selloff was driven primarily by an aggressive unwinding of leveraged long positions rather than a major deterioration in Bitcoin’s underlying fundamentals. Nevertheless, until ETF flows improve and market leverage normalizes, volatility is likely to remain elevated.
Temitope Olajide
The CoinRemark Team
