Bitcoin Recovers Above $61K After $1.6B Liquidations
Bitcoin rebounded above $61,000 after dipping below $60,000 in a macro-driven selloff that triggered $1.6 billion in crypto liquidations. The move came after a strong jobs report repriced Fed rate expectations, with altcoins suffering steep weekly losses.
Quick Take
Bitcoin dipped below $60K, then bounced to $61K after selloff.
$1.6B liquidated in 24 hours, with $1.21B in longs wiped out.
Ether down 21.6% weekly, Solana 23.7%, amid heavy altcoin declines.
Market questions if $60K support holds or breaks on retest.
Market Impact Analysis
BearishHeavy liquidations and macro-driven selloff increase downside risk, though quick recovery off $60k suggests some support.
Speculation Analysis
Key Takeaways
- Bitcoin briefly broke below $60K, then reclaimed $61K as buyers stepped in.
- Over $1.6B in positions were liquidated, with longs accounting for $1.21B.
- Ether plunged 21.6% and Solana 23.7% over seven days, leading altcoin losses.
- The $60K level now acts as a critical support; a break could trigger further declines.
What Happened
Bitcoin plunged below $60,000 to a low of $59,227 overnight before recovering above $61,000 by Saturday morning in Asia. The bounce came after a macro-driven selloff wiped out leveraged positions across crypto markets. The broader market turmoil was ignited by a strong US jobs report, which caused a sharp repricing of Federal Reserve rate expectations and sent shockwaves through risk assets.
The Numbers
The liquidation cascade totaled $1.6 billion across 308,000 traders, with $1.21 billion in longs. Bitcoin saw $534 million in liquidations, while ether accounted for $423 million. Zcash, already down 44% on a privacy-pool bug, added $115 million in liquidations. Ether dropped 21.6% on the week to $1,575, and Solana sank 23.7% to $63. Two-year Treasury yields surged 12 basis points to 4.16%, and the Nasdaq 100 fell 5%, its worst day since April 2025.
Why It Happened
Friday鈥檚 nonfarm payrolls report exceeded expectations, prompting markets to price in a Fed rate hike by end-2026鈥攁 stark reversal from earlier cut expectations. The dollar rallied and two-year yields spiked, punishing risk assets. Crypto-specific weaknesses compounded the move: a record streak of ETF outflows and Strategy鈥檚 first bitcoin sale since 2022 had already eroded buying support. Over-leveraged longs were then liquidated in a chain reaction.
Broader Impact
The selloff highlights crypto鈥檚 growing correlation with macro markets, where a hawkish shift in rate expectations can trigger rapid deleveraging. With $1.6 billion in liquidations, the event underscores the danger of excessive leverage in crypto, particularly as altcoins suffered outsized losses relative to bitcoin.
What to Watch Next
- Can bitcoin build on its bounce above $61K, or will a retest of $60K break support?
- Monitor ETF flows and Federal Reserve commentary for further macro cues.
- Altcoin stability鈥攚atch for potential recovery or further downside in ether and solana.
This article is for informational purposes only and does not constitute financial advice.
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