Nearly $1 billion in crypto futures positions were wiped out as bitcoin dipped to $59,175 before recovering amid AI stock rallies.
Bitcoin fell to $59,175 overnight, its lowest level since early June, before rebounding to $61,500 by Thursday morning. The drop triggered $1 billion in liquidations across crypto futures, including $430 million in long bitcoin positions, as traders exited bets on higher prices.
The decline followed a 10% drop from Monday’s peak near $65,500, driven by Fed hawkishness, six weeks of ETF outflows, and thin summer liquidity. A quarter-end options expiry on June 30 added to market instability, with $59,000 flagged as a key support level.
The recovery was fueled by strong earnings from Micron Technology and a planned $29 billion U.S. listing by SK Hynix, lifting AI chip stocks and broader risk sentiment.