$1.6 Billion Vanishes in 24 Hours
Bitcoin’s price tumbled to $59,227 in overnight trading, marking its lowest point since October 2024 and triggering a cascade of liquidations across the crypto market. In just 24 hours, roughly $1.6 billion in leveraged positions were wiped out, affecting around 308,000 traders who saw their bets erased as the market moved sharply against them. Long positions—those betting on rising prices—made up about $1.21 billion of these liquidations, underscoring how many traders were caught off guard by the speed and scale of the decline.
The rout wasn’t isolated to bitcoin alone: ether saw $423 million in liquidations, while Zcash (ZEC) registered a dramatic $115 million loss following news of a critical vulnerability. Notably, Zcash’s price collapsed by more than 40% overnight after the flaw was discovered wiht help from Anthropic’s Opus 4.8 AI model.
By Saturday morning in Asia, bitcoin had managed to claw back above $61,000 but remained down about 1.3% on the day. The rapid rebound offered little comfort for those who had already been liquidated or for traders still exposed to volatile price swings.
Dogecoin and shiba inu each dropped roughly 9% as bitcoin hovered just below the $60,000 threshold late Friday.
Long Traders Take the Hardest Hit
The majority of liquidations affected long positions, with over $1.21 billion erased as bitcoin and major altcoins plunged through support levels. This wave of forced selling amplified downward pressure and created a feedback loop that accelerated losses across the board. For context, bitcoin has now lost nearly 17% of its value over the past week and more than 27% over the last month, wiping out about $200 billion from its total market capitalization.
On paper, leveraged trading offers outsized gains; in reality, it often magnifies risk during sharp downturns.
The pain extended beyond bitcoin: ether dropped 21.6% over seven days to around $1,575, while solana shed 23.7% to settle near $63. Memecoins like dogecoin and shiba inu also suffered double-digit declines as speculative appetite dried up and open interest in futures contracts fell toward cycle lows.
See Also
AI Stocks Steal Crypto’s Spotlight
A key factor behind crypto’s recent slide is a shift in investor focus toward artificial intelligence stocks and IPOs. According to coindesk.com, capital markets have poured approximately $400 billion into AI buildouts over six months—a stark contrast to the roughly $4 billion that has exited spot bitcoin ETFs since May 14. Michael Saylor, Chairman of MicroStrategy (MSTR), noted that this redirection of speculative capital has come at bitcoin’s expense as investors chase growth stories like Anthropic’s planned $50 billion IPO and anticipated offerings from OpenAI and SpaceX that could collectively raise over $200 billion.
Mati Greenspan of Quantum Economics points out that AI has become the dominant destination for speculative capital this year. As a result, traditional crypto inflows have slowed or reversed—even as U.S. stock indices like the Nasdaq and S&P 500 have posted double-digit gains over the past twelve months.
ETF Outflows Add Fuel to Fire
Spot bitcoin ETFs in the U.S., once hailed as a catalyst for mainstream adoption, have instead seen persistent outflows during this downturn—totaling $3.45 billion across eleven consecutive sessions. This exodus signals a loss of confidence among institutional investors who had previously viewed ETFs as a safer gateway into digital assets.
Adding to bearish sentiment is the fact that Michael Saylor’s Strategy entity—previously known for aggressive bitcoin accumulation—has reportedly turned seller amid these turbulent conditions. With ETF flows reversing and major buyers stepping back or cashing out, upward momentum has stalled even as some traders look for signs of stabilization above key psychological levels like $60,000.
Why it matters
For everyday investors and institutions alike, this week’s events highlight both the volatility inherent in crypto markets and the importance of risk management when using leverage or derivatives. The sheer scale—$1.6 billion liquidated in one day—shows how quickly fortunes can reverse when sentiment sours or outside forces (like AI stock mania) pull liquidity away from digital assets.
It’s also uncertain whether bitcoin will regain its previous highs anytime soon: after falling more than 52% from its October peak above $126,000 and losing nearly 20% just this past week, confidence remains shaky even after Saturday’s brief recovery above $61K.
Meanwhile, legal maneuvers continue behind the scenes—for example, a legal notice sent via Bitcoin's OP_RETURN field in July 2025 demands proof of ownership from an address holder by November 5th—reminding observers that regulatory questions persist alongside price turbulence.
What comes next
If spot bitcoin ETF outflows, which have totaled $3.45 billion across 11 consecutive sessions, continue into next week, further immediate pressure on bitcoin prices is likely; however, whether these outflows persist or reverse remains unclear at this time.
