Bitcoin fell below $61,000 on Tuesday as escalating tensions in the Middle East triggered a 2.9% daily price decline. The cryptocurrency reached an intraday low of $60,718 on Bitstamp before recovering above $61,000, according to exchange data. The price drop occurred amid geopolitical volatility, with the broader cryptocurrency market experiencing $467.5 million in total liquidations while on-chain analytics firm Glassnode reported that 8 million bitcoin now trade below their last transaction price.
Bitcoin Drops to $60,718 Intraday Low on Tuesday
Bitcoin reversed gains made 24 hours earlier on Tuesday, falling below the $61,000 threshold. Bitstamp data showed the cryptocurrency plunged to an intraday low of $60,718 before reclaiming $61,000 and attempting to test the $62,000 mark. At 2:30 p.m. EST, bitcoin traded just below $61,700, representing a daily loss of 2.9%.
The retreat to near lows last seen on June 5 brought bitcoin's weekly losses to 8.5% and more than 15% since the beginning of the month. Bitcoin's market capitalization slid from $1.27 trillion 24 hours earlier to approximately $1.24 trillion at the time of writing.
U.S. President Donald Trump posted on social media promising a response to the downing of an Apache attack helicopter by Iranian forces, with the timing coinciding with bitcoin's slip to its intraday low. Multiple reports surfaced on X suggesting commercial airlines scrambled to evacuate their fleets from Tehran's runways amid mounting fears of a U.S. military response.
Derivatives Market Records $467.5 Million in Total Liquidations
Bitcoin's price action triggered the liquidation of $104 million in long bets and nearly $27 million in short bets in the derivatives market. This reversed the pattern from 24 hours earlier, when $240 million in shorts was liquidated versus $42.5 million in long bets.
Overall cryptocurrency market liquidations topped $467.5 million, with long bets accounting for $364.5 million of the total. The liquidation wave followed bitcoin's rapid price decline of over $2,000 in a matter of hours on June 9.
Glassnode Reports 8 Million Bitcoin Trading Below Cost Basis
On-chain analytics firm Glassnode reported that more than 8 million bitcoin are now "underwater," meaning these coins were last moved or purchased at prices higher than the current spot value. According to Glassnode data, the rapid market reset inflicted unrealized losses on spot market participants, wiping out short-term cost bases across the board.
This marked a stark pivot from the cycle's peak, a period when nearly half of the entire circulating supply sat in profit. The sharp influx of unrealized losses reversed recent profit trends that had characterized earlier phases of the market cycle.
FAQ
What caused bitcoin to fall below $61,000 on Tuesday?
Bitcoin fell below $61,000 on Tuesday due to escalating tensions in the Middle East, including exchanges between Israel and Iran and a social media post from U.S. President Donald Trump promising a response to the downing of an Apache attack helicopter by Iranian forces.
How much did the cryptocurrency market lose in liquidations?
The cryptocurrency market experienced $467.5 million in total liquidations, with long bets accounting for $364.5 million of the total. Bitcoin specifically saw $104 million in long liquidations and nearly $27 million in short liquidations.
How many bitcoin are currently trading below their purchase price?
According to Glassnode data, more than 8 million bitcoin are now "underwater," meaning they were last moved or purchased at prices higher than the current spot value, representing a significant reversal from earlier profit trends.
