Crypto Market Suffers Bloodbath: Bitcoin Falls Below $60,000 Again, Will This Pullback Slide to 50,000?

TradingKey - Under the impact of the macroeconomic environment and traditional financial IPOs, crypto market liquidity is restricted, and Bitcoin has once again fallen below the $60,000 mark, though it has not yet disrupted its range-bound trend.

On June 25, cryptocurrencies suffered another bloodbath, with the entire market falling over 2% and the total market capitalization pulling back to around $2 trillion, hitting a new low since October 2024. Bitcoin ( BTC ), Ethereum ( ETH ), Solana ( SOL ), Dogecoin ( DOGE) and other major coins all fell by more than 3%, with only HyperLiquid seeing a slight increase.

Price movements of the top 10 cryptocurrencies by market capitalization, Source: TradingView

This wave of decline in the crypto market has dealt another heavy blow to bulls. Over the past 24 hours, more than 170,000 traders were liquidated in the crypto market, with the total liquidation amount approaching $1 billion, of which long liquidations accounted for about $800 million, or as high as 80%. The main liquidated assets were BTC and ETH longs, amounting to $400 million and $200 million, respectively.

Since touching $67,000 last Monday (June 15), Bitcoin's price has continued to correct, falling below $60,000 again this morning to touch its October 2024 low. This was not caused by sudden negative news, but rather by multiple sharp blades from traditional finance and Strategy striking the market simultaneously.

The hawkish signals released by the Federal Reserve after its June meeting still hang over the market. This has not only dashed hopes of a near-term rate cut but has even led the market to begin pricing in the possibility of future rate hikes, causing funds to flow toward safer haven assets. Furthermore, with SpaceX officially listing on Nasdaq, and expected listings of AI giants like OpenAI and Anthropic ahead, some of the attention and capital of retail and institutional investors have been drained away, leaving the crypto market facing a clear liquidity crunch in the absence of new narratives.

According to Coinglass data, U.S. spot Bitcoin ETFs have faced net outflows for five consecutive days, accumulating $584 million, with an outflow of approximately $229 million on June 24 alone. This persistent bleeding shattered the buying confidence seen in early June, and the lack of institutional funds to absorb the selling directly weakened the market's price support.

Strategy ( MSTR )—as the world's largest corporate holder of Bitcoin—saw its preferred shares, STRC, fall below their initial par value of $100, weakening its financing capabilities. This forced the company to tap its cash reserves of approximately $1.4 billion on the balance sheet or rely on operating cash flow from its traditional software business. As a result, the ammunition that could have been used to "buy the dip in BTC" is now forced to "maintain the credit of the preferred shares," which will undoubtedly slow down its accumulation of Bitcoin and reduce buying interest in the market.

From a technical perspective, although Bitcoin dropped below the $60,000 mark again this morning, it quickly rebounded back above it. This indicates that bulls are willing to defend the price, so it can be viewed as a "fake breakout," meaning there remains a possibility of a rebound and move higher. However, if major negative news hits the market again, Bitcoin could head toward the next key level of $50,000.

Bitcoin price chart, Source: TradingView