Bitcoin flash crash below $62K triggers $1.8B leveraged liquidations as ETF outflows persist
Bitcoin slid below $62,000 during Asia trading, triggering $1.8B in crypto liquidations over 24 hours, mainly from leveraged longs ($1.5B), according to CoinGlass. The move also matched persistent withdrawals from US spot Bitcoin ETFs: about $397M net outflows on Wednesday and roughly $1.4B pulled so far this week, led by nearly $1.2B outflows from BlackRock’s IBIT.
Separately, traders tracked Mt. Gox activity. A wallet associated with the Mt. Gox estate deposited 116 BTC to Bitstamp, after a separate $731M transfer to a new address. This revived speculation about creditor repayments that could occur ahead of an October 2026 deadline.
At press time, BTC traded around $64,628, down about 12% on the week. Ether (ETH), BNB and XRP were also pressured as the broader market extended its pullback.
In relative strength, Worldcoin (WLD) jumped about 33% in 24 hours and outperformed the market. Ethena (ENA) gained about 18% after positive backing from Coinbase Ventures. Maelstrom framed WLD as an AI-boom proxy ahead of an IPO wave, while noting WLD is still down year-to-date and that negative perpetual funding suggests heavy short positioning. Maelstrom also pointed to unlock dynamics and expected reduced daily unlock pressure later in July.
Bearish
The $62K breakdown and $1.8B liquidation—especially $1.5B from leveraged longs—signals forced selling and elevated downside momentum. ETF outflows reinforce the bearish flow picture: persistent withdrawals (about $397M on Wednesday, ~$1.4B YTD this week) typically pressure spot demand and can prolong volatility after a flash move. The Mt. Gox-related 116 BTC to Bitstamp adds supply-overhang sentiment, often acting as a catalyst for risk-off positioning until traders gain clarity on repayment timing.
That said, the article also highlights pockets of resilience (WLD +33%, ENA +18%). Historically, after flash crashes driven by leverage and ETF flow stress, markets can rebound quickly once liquidations are exhausted. But unless ETF outflows slow and BTC reclaims key resistance, the path of least resistance remains downward or choppy.
Short term: expect continued volatility, potential follow-through liquidations, and wider spreads due to fragile positioning.
Long term: if ETF outflows persist and Mt. Gox supply concerns linger, confidence may stay weak. Conversely, clearer repayment guidance and reduced unlock/short-pressure narratives for specific tokens could support selective recoveries, even if the broader BTC trend stays bearish.