Bitcoin's $60K Crash Wipes Out $2.6B in Leveraged Bets

$2.6 billion vanished in 24 hours. Thursday's crypto carnage sent bitcoin tumbling to $60,000—its lowest point since October 2024—triggering one of the most devastating liquidation events in market history.

The Third-Worst Oversold Reading Ever

The crash pushed bitcoin's relative strength index (RSI) to the third-most oversold reading in its history. Such extreme conditions typically precede sharp bounces, and early signs emerged as Asian markets opened. Bitcoin recovered from $60,000 to above $65,000, while ethereum climbed from a $1,750 low back to $1,920.

But the broader picture remains grim. Privacy coin zcash has hemorrhaged 34% over the past week, while optimism, solana, and ethereum are all nursing losses around 30%. This isn't just a crypto problem—the Nasdaq 100 has dropped 6% since January 28, while gold and silver have plummeted 12% and 38% respectively.

The $70K Support Massacre

The breach of the critical $70,000 support level exposed just how much bullish leverage had accumulated at that price point. Of the $2.6 billion in liquidations, over $2.1 billion were long positions—a stark reminder of the market's one-way bet mentality.

The crypto futures market has shrunk below $100 billion for the first time since March 2025. Annualized perpetual funding rates for major tokens have flipped negative, signaling a rush toward bearish bets. Bitcoin's 30-day implied volatility spiked to nearly 100% late Thursday before pulling back under 70%.

Options markets told their own story of fear. Traders scrambled to buy puts with strike prices as low as $20,000, while BlackRock's IBIT ETF saw record options activity as the one-year skew rose to over 25 points—indicating peak fear.

Unlikely Winners in the Wreckage

Amid the carnage, a few tokens defied gravity. Privacy-focused decred surged 31% in 24 hours, extending a rally from $17.4 to $24.2. HyperLiquid's HYPE token maintained an 11% weekly gain despite Thursday's 4% dip.

XRP provided the day's most dramatic volatility, plunging over 30% before bouncing 21%. Trading volume exploded to $14 billion, up 143% in 24 hours. Meanwhile, CoinMarketCap's "altcoin season" indicator dropped to 24/100, suggesting investors are fleeing to safer assets like bitcoin or stablecoins.