Crypto Drops After $1.6B in Long Liquidations, Mt. Gox BTC Moved

Over the past 24 hours, cryptocurrency markets swung as more than $1.6 billion in liquidations, mostly from long positions, pushed Bitcoin down to about $61,287 before prices recovered to roughly $64,435.

Liquidation trackers recorded approximately $1.6 billion in total liquidations, with about $1.34 billion coming from longs. The selling pressure drove the total crypto market capitalization to an intraday low near $2.12 trillion, later recovering to around $2.22 trillion.

On-chain transfers showed wallets linked to the Mt. Gox bankruptcy moving Bitcoin to Bitstamp, an exchange. Market participants noted those transfers as a potential source of additional supply on exchanges.

Technical commentary listed $61,245 as a level that would preserve the current Bitcoin price structure. A daily close above $66,337 would open a path toward $69,400, while a close below $61,245 would expose $60,000 and a recent low near $59,980.

Joao Wedson, chief executive of Alphractal, warned: “I do not think this is a good moment to be opening longs.” He pointed to a rising long/short ratio across major exchanges that has increased the risk of repeated forced liquidations.

A small sale from a Strategy Bitcoin holding and geopolitical tensions involving Iran were also cited by market participants as added factors during the decline.

Smaller tokens moved sharply as well. Humanity (H), an AI-adjacent token that had surged more than 1,000% from its base, traded near $0.59 after a June 2 peak near $0.86 as traders booked gains. Technical notes placed $0.70 as the level Humanity needs to reclaim on a daily close to attempt another breakout, with $0.87, $0.95 and $1.21 listed as subsequent targets and $0.54 identified as a downside base.

Investor Raoul Pal pointed out that Bitcoin has gained more than 300% since the 2022 low and has outperformed the Nasdaq 100 over that period.

Market analysis flagged $2.26 trillion as a reclaim level that would open targets at $2.35 trillion and $2.42 trillion. If $2.12 trillion holds, analysts view the rebound as intact; if it breaks, the prior bottom near $2.05 trillion would return to view.