Bitcoin crash below $60,000 triggers $1 billion loss as markets now price Fed rate hike by October
Bitcoin fell below $60,000, its lowest level since October 2024, as traders abandoned hopes for Fed rate cuts and began pricing in the possibility of a rate hike later this year. The decline extended a drawdown of more than 50% from last October’s record high. The selloff spread across crypto: Ethereum slid to around $1,650, and major tokens such as Solana, BNB, Cardano, XRP, Dogecoin, and Hyperliquid also fell. Roughly $1 billion in leveraged crypto positions were liquidated in 24 hours, with long bets making up most of the losses. Bitcoin-linked contracts took the biggest hit. Spot selling drove the drop, with heavy sell orders near $60,000 overwhelming demand. Weak broader demand, spot Bitcoin ETF outflows of more than $6 billion over nearly seven weeks, and rising Treasury yields added pressure. A stronger dollar also weighed on risk assets. Some analysts say the market may not have fully capitulated yet, so further downside remains possible.
