Bitcoin plunged to the $60,000 zone on June 3-4, hitting intraday lows between $60,000 and $61,500 as leveraged traders got wiped out to the tune of $1.76 billion in a single 24-hour stretch. That figure covers liquidations across the entire crypto derivatives market, but the pain was concentrated in one direction: long positions.

What triggered the drop

Bitcoin had already been weakening throughout early June, falling below the $70,000 level before accelerating its descent toward $60,000.

A major catalyst was sustained outflows from spot Bitcoin ETFs. Institutional money that had been flowing into these products reversed course, adding significant downward pressure on the spot price.

Macro conditions didn’t help either. Rising inflation rates and geopolitical tensions created the kind of environment where institutional investors reassess risk. The combination of ETF outflows and broader risk-off sentiment created a one-two punch that leveraged traders simply weren’t positioned for.

Ethereum also faced hundreds of millions in liquidations during the same window, underscoring that this was a systemic flush rather than a Bitcoin-specific event.

The $60K support level and why it matters

CoinGlass reported a similar liquidation event back in February 2026, when Bitcoin retested this same $60,000 level during a prior correction.

Market sentiment has deteriorated sharply into what’s broadly described as “extreme fear.” Prediction markets are reflecting elevated probabilities of Bitcoin dropping below $60,000 throughout June.

The heavily long-biased liquidations tell their own story. When the majority of forced closures are longs, it means the market was overwhelmingly positioned for higher prices heading into the move.

What this means for investors

The persistent ETF outflows add a layer of concern that didn’t exist in previous cycles. Spot Bitcoin ETFs were supposed to be the stabilizing force, bringing deep-pocketed institutional capital that would dampen volatility. Instead, those same institutions are pulling capital during stress periods, which actually amplifies moves because the ETF redemption process requires selling actual Bitcoin on spot markets.

The February 2026 retest of the $60,000 level ultimately held, and buyers who stepped in during that panic were rewarded. But the macro backdrop has since worsened, ETF flows have turned negative, and sentiment indicators are flashing extreme fear.

If Bitcoin does not hold $60,000, traders should watch for another wave of cascading liquidations that could push prices into the mid-$50K range, where the next meaningful cluster of technical support sits.