Bitcoin slid toward the $70,000 support level on June 2 as a wave of forced liquidations erased $751 million in leveraged positions across crypto exchanges.
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Bitcoin drops toward $70,000 as $751M liquidation cascade hits crypto market
Bitcoin fell 3.7% to $70,311 by 06:00 UTC on June 2, after a cascade of forced liquidations wiped out $751 million in leveraged positions across major exchanges, per Coinglass data.
"The liquidation cascade reflects an over-leveraged market that built up during the May consolidation around $75,000," Nina Volkov, a crypto macro analyst, said. "When that support broke, stop-losses and margin calls compounded the selling."
Long positions accounted for $682 million of the total liquidations, or roughly 91%, with Binance and OKX seeing the heaviest volumes at $287 million and $198 million, respectively, according to Coinglass. Bitcoin's open interest dropped 12% to $28.4 billion over the past 24 hours, while the aggregate funding rate flipped negative to -0.005% across perpetual swaps, pointing to bearish positioning. The total crypto market cap fell to approximately $2.42 trillion, its lowest level since early May.
The $70,000 level now stands as a critical psychological and technical threshold. A decisive break below it could open the door toward the $65,000 to $67,000 range, where the 200-day moving average sits. On the upside, resistance is clustered around $73,500 and $75,000. The next macro catalyst comes on June 4, when the U.S. Treasury settles another $5 billion to $15 billion in new bills, potentially tightening liquidity further.
The selloff extended beyond Bitcoin. Ether fell 4.2% to $2,006.90, while Solana dropped 3.1% to $82.31, tracking the broader risk-off move. The CoinDesk 20 Index, a broad-market benchmark, declined 3.4%.
The liquidation event coincided with a broader risk-asset pullback. Nasdaq-100 futures slipped 0.3% in early trading, while the U.S. Dollar Index held near 104.5, adding pressure on crypto and other risk-sensitive assets. Gold edged higher to $4,546, suggesting a flight to safety rather than a systemic unwind.
Bitcoin's 30-day realized volatility has climbed to 62%, up from 48% in mid-May, reflecting the market's heightened sensitivity to macro triggers. The Crypto Fear & Greed Index fell to 32, deep in "fear" territory, compared with 48 a week earlier.
This article is for informational purposes only and does not constitute investment advice.
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