BTC drops below $60,000 as $1.5B liquidated on US jobs shock
Bitcoin (BTC) slid below $60,000, extending a sharp sell-off that pushed its 10-day loss to nearly $19,000. Volatility spiked as more than $155M in long positions were liquidated within an hour, bringing total liquidations over the last 24 hours to about $1.5B.
The trigger was stronger-than-expected US labor data. May non-farm payrolls came in at 172,000 versus 85,000 expected, with unemployment at 4.3%. Downward pressure on rate-cut expectations from the Federal Reserve added to weakness across risk assets, spreading pressure into crypto and tech.
Derivatives are now centered on the $60,000 level. Deribit executives said $60,000 is a key options threshold: market makers with short gamma may hedge by selling spot BTC or futures when BTC breaks lower. Open interest is also notable—over $1.2B sits on $60,000 strike put options on Deribit—raising the risk of additional hedging and fresh long liquidations if BTC stays below that strike.
Commentary from Peter Schiff pointed to weak support near $61,000 and potential spillover from crypto/tech into other asset classes. On-chain indicators echoed stress: Glassnode data showed US government BTC holdings (mostly seized) fell in value to about $20.8B from a $40.7B peak. MVRV dropped to 1.19, a region often associated with undervaluation.
Traders are watching $59,000–$60,000 as the critical test. To stabilize, BTC would likely need to reclaim roughly $65,000 resistance; otherwise, liquidation-driven selling risk remains elevated.
Bearish
This news is bearish for BTC in the short term because the move below $60,000 is directly linked to liquidation cascades and options-driven hedging. Stronger US non-farm payrolls reduced expectations of Fed rate cuts, worsening risk-off sentiment. Historically, when BTC breaks a major psychological/derivatives strike level during a macro shock, it often triggers a feedback loop: price falls → margin pressure → liquidations → dealers hedge with spot/futures selling → further downside momentum.
The article highlights exactly that mechanism: Deribit’s $60,000 threshold tied to short-gamma market maker hedging, plus large $60,000 put open interest (over $1.2B). Such positioning can amplify selling if BTC remains below the strike, keeping volatility elevated.
For the longer term, on-chain stress signals (declining MVRV, weaker government BTC value) suggest the market may still be in a fragile repricing phase. However, it’s not an “all-clear” sell signal permanently: prior cycle behavior around major support zones has sometimes transitioned into gradual accumulation after forced-liquidation phases. The key near-term line for traders remains reclaiming resistance around $65,000; until then, bearish control is likely.