Bitcoin steadied above $60,000 Thursday after a volatile two-day sell-off that saw prices briefly touch $61,300 before bouncing back to $62,500. The shakeout liquidated more than $3 billion in leveraged positions across crypto derivatives exchanges, marking one of the heaviest clearing events this quarter.
The liquidation cascade
The rout started Wednesday and accelerated through early Thursday morning, hitting long positions hardest. Data from major tracking platforms show the bulk of the $3 billion in forced closures came from long traders who had piled on leverage during the recent grind higher. The drop to $61,300 triggered a cascade of margin calls, amplifying the move before buying interest returned around the $61,500 level.
Options market signals caution
Even as spot prices recovered, the options market tilted defensive. Traders accumulated large volumes of $60,000 put options — a bet that Bitcoin could dip another 4% or more from current levels. Put open interest at that strike swelled noticeably over the past 24 hours, suggesting professional traders are paying up for downside protection rather than chasing the rebound.
The recovery above $62,500 has calmed some nerves, but the heavy put buying and the sheer size of the liquidation make the near-term outlook fragile. A lot depends on whether the $61,300 low holds as support — if it breaks again, the $60,000 strike suddenly becomes very relevant. Traders will watch Friday's weekly close for direction.
