Bitcoin fell below $62,000 during a sharp sell-off Tuesday morning, wiping out the leveraged positions of bulls who'd bet on a continued rally. Across crypto markets, total liquidations topped $700 million — with long positions accounting for roughly $595 million of that pain.
The Tuesday morning flush
The move came fast. Bitcoin slid under $62,000 in early trading, a level it hadn't tested in weeks. That drop alone cost BTC bulls $160 million in liquidations, according to data tracked by major analytics platforms. Ethereum and other altcoins weren't spared either, with heavy selling hitting the broader market.
The timing isn't great for traders who loaded up on leverage after Bitcoin's recent run. When the price breaks below a key psychological round number like $62,000, cascading liquidations often follow — and they did.
Where traders are looking next
Some analysts are already penciling in a $50,000 target for Bitcoin. That's a roughly 20% slide from current levels, and while it's far from guaranteed, the speed of Tuesday's selloff has made that scenario feel more plausible. The $50,000 mark has acted as both support and resistance in the past, and a retest would likely bring another wave of liquidations.
For now, the market is digesting the flush. Open interest dropped sharply, suggesting a lot of hot money got washed out. Whether that clears the way for a recovery or signals more downside remains the open question.
