Bitcoin slid below $62,000 Thursday, triggering a $1.5 billion purge of leveraged long positions across crypto exchanges. The move extends a pattern that Presto Research says has defined much of 2026: each time crypto sells off, AI stocks and gold rally in tandem. The catalyst this time appears to be a broader shift in macro sentiment, as traders sharply scale back expectations for Federal Reserve rate cuts.
Liquidations hit $1.5 billion
The cascade was brutal and fast. Leverage built up over the past week evaporated in hours as bitcoin tumbled through support levels. More than $1.5 billion in long positions were liquidated, according to data from major tracking platforms. The sheer size of the wipeout suggests the move caught a lot of momentum traders offsides — positions that were fine at $64,000 suddenly underwater at $61,800. Some exchanges reported their highest single-day liquidation volume this quarter.
A familiar pattern this year
Presto Research, in a note circulated Thursday, pointed out that every significant bitcoin drawdown in 2026 has coincided with rallies in AI-related equities and in gold. The pattern undermines the narrative, popular earlier in the cycle, that crypto was becoming a macro hedge or a safe haven alongside the yellow metal. Instead, money appears to be rotating out of crypto and into AI stocks and gold during moments of macro uncertainty. The research team didn't predict where bitcoin goes next, but they highlighted that the correlation has held four times this year.
Fed rate-cut expectations take a hit
The broader backdrop hasn't helped. Markets have been paring back bets on Federal Reserve rate cuts for weeks. Strong employment data and stubborn services inflation have convinced many that the central bank won't ease as aggressively as hoped earlier in 2026. Fewer expected cuts mean tighter financial conditions—bad for risk assets like crypto. The timing isn't great for bulls: with the next Fed meeting about three weeks away, any further hawkish signals could keep pressure on bitcoin and altcoins. For now, the liquidation flush may reset some leverage, but the macro headwind remains in place.
