Bitcoin Slides From $64,000 to $62,000 as Futures Liquidations Deepen Selloff

Bitcoin climbed to near $64,000 before plunging to around $62,000 a day later, with liquidations in the futures market amplifying the drop, Cointelegraph reported on July 6.

About $415 million in net buying flowed into Bitcoin that day, driven mainly by futures trading, pushing the token close to $64,000. In a four-hour span, roughly $687 million in futures buying poured in, forcing the liquidation of about $33 million in Bitcoin short positions. Spot-market inflows, by contrast, were minimal, indicating there was little cash-market demand to sustain the rally.

Sentiment then shifted abruptly after a filing with the U.S. Securities and Exchange Commission showed that Strategy sold 3,588 Bitcoin worth about $216 million. The company sold the tokens to fund dividend payments and still has capacity to sell an additional roughly $1.25 billion, the report said.

After the filing, net selling in Bitcoin futures reached about $456 million over four hours. During that stretch, roughly $42 million of long positions and $49 million of short positions were liquidated, fueling wider volatility. The subsequent rebound took on a different pattern, with about $568 million in net futures buying accompanied by roughly $143 million in spot buying.

Market sentiment has yet to break sharply. Bitcoin futures funding rates have stayed positive for more than a week, while open interest stands at about $20.6 billion. Still, leveraged long positions remain heavily built up, raising the risk of bigger swings if another selling catalyst emerges. Investors are closely watching whether Strategy sells more Bitcoin and whether it uses the remaining $1.25 billion in potential sales capacity.

Minutes from the Federal Reserve's June Federal Open Market Committee meeting, due this week, are also a key variable for the market. Traders are pricing in a 75.6% chance that the benchmark rate will be held at 3.50% to 3.75% in July. If the minutes are interpreted as more hawkish than expected, Bitcoin could test resistance at $62,300 to $62,800 and support at $61,000 and $59,500.