Bitcoin drops below $59,100, long positions liquidated! 24h liquidation reaches $988 million, Fear & Greed Index plunges to 12

Bitcoin briefly dipped to $59,297 at 02:00 this morning, just a step away from the psychological $60k mark, currently trading at $60,796 (▼3.47%). Over the past 24 hours, total market liquidations reached $988 million, with long positions accounting for 80.8% at $799 million, a true long squeeze. The Fear and Greed Index has crashed to 12 (Extreme Fear) today, worsening from 17 yesterday, with hawkish pressure from the Fed continuing to weigh.

(Previous coverage: Fed's Warsh hawkish debut! Bitcoin plunged below $63.9K, turning all lines red, $442 million liquidations, Fear Index at 15)
(Background: Bitcoin slightly pulled back to $63K! Tech stock selloff bloodbath in crypto markets, $558 million liquidations, Fear Index at 17)

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• Longs crushed: $988 million liquidated in 24h, 80% were long positions
• Trigger factors: Fed hawkishness continues, Warsh abandons forward guidance, ETF outflows persist
• Other coins all turn red: SOL, XRP also drop
• Fear Index crashes to 12, U.S. stocks close lower, whether $60K can hold is key for the outlook

Bitcoin staged a dramatic drop at 02:00 this morning, sliding from a 24h high of $63,239 to a low of $59,297, approaching the $60k psychological level viewed as the "bull-bear divide" by the market. It has since stabilized slightly and currently trades at $60,796 (▼3.47%). Ethereum also plunged sharply, hitting a low of $1,552, now at $1,618 (▼3.18%). Since the June 16 highs, BTC peaked at $67,203 and ETH at $1,843, both having evaporated over 9.5% and 12% from their peaks respectively, with a clear downtrend and no signs of stabilization.

Longs crushed: $988 million liquidated in 24h, 80% were long positions

This wave of decline has cost leveraged longs dearly. According to CoinGlass data, total market liquidations over the past 24 hours reached $988 million ($987.84M), with long liquidations at $799 million ($798.57M), accounting for 80.8% of the total, while short liquidations were only $189 million. This severe imbalance between long and short positions is a classic "long squeeze" pattern. Looking at the last 12 hours, liquidation volume remains high at $864 million (longs at $707 million), showing that selling pressure was concentrated during this morning's sharp decline. The largest single liquidation was $7.8 million, indicating that some large leveraged positions evaporated instantly.

Trigger factors: Fed hawkishness continues, Warsh abandons forward guidance, ETF outflows persist

This decline was not triggered by a single event but represents the accumulation of multiple pressures since the June 17 FOMC meeting. The Fed kept interest rates unchanged at 3.50%-3.75% at that meeting, but the dot plot raised the median year-end rate from 3.4% predicted in March to 3.8%, effectively eliminating expectations for rate cuts throughout 2026 and even hinting at the possibility of another quarter-point hike. New Chairman Kevin Warsh, in his first meeting, announced the abolition of the "forward guidance" tradition, meaning the Fed will no longer telegraph its next moves, fueling the market's "higher for longer" panic sentiment that continues to this day.

Continued selling in tech and AI stocks also dragged risk assets lower, with the Nasdaq closing down 0.43% at 25,476. Confidence in tech stocks was clearly shaken ahead of Micron's earnings report. On the crypto front, Bitcoin spot ETFs continue to see net outflows. Market rumors also suggest that Strategy (formerly MicroStrategy) has rarely used its BTC positions, further adding to bearish pressure, which was concentrated around 02:00 this morning.

Other coins all turn red: SOL, XRP also drop

This correction is not just a Bitcoin story; altcoins have not been spared either. Solana (SOL) currently trades at $67.53 (▼3.38%), with a 24h low of $64.71, down over 10.7% from its June 16 peak of $75.60. Ripple (XRP) is now at $1.0768 (▼2.95%), with a 24h low of $1.0462, also falling from the June 16 high of $1.29, a decline of nearly 17%. The collective downturn among major coins indicates a systemic risk sentiment retreat rather than a technical adjustment in individual assets.

Fear Index crashes to 12, U.S. stocks close lower, whether $60K can hold is key for the outlook

Market sentiment is equally bleak. The Fear and Greed Index today stands at 12 (Extreme Fear), down from 17 yesterday, with the index continuing to bottom out, reflecting accelerating panic among retail and institutional investors. In U.S. equities, the S&P 500 closed down 0.10% at 7,358, and the Nasdaq fell 0.43%, with traditional risk assets also weakening, failing to provide support for the crypto market.

The focus for the outlook centers on one number: $60k. BTC briefly lost this level at $59,297 this morning but has recovered to $60,796, but the strength of this threshold remains to be tested. If $60K cannot hold firm against the next wave of selling pressure, then ETH's $1,550 and SOL's $64 are also precarious. The Fed's hawkish expectations have not yet been fully priced in, and whether ETF capital flows will reverse will be the most important signal to track in the short term.