Bitcoin Falls Below $61,000; 8 Million BTC Underwater

Bitcoin fell below $61,000 on Tuesday, touching an intraday low of $60,718 on Bitstamp before briefly reclaiming $61,000. At 2:30 p.m. EST bitcoin traded just under $61,700, a daily decline of about 2.9%, with weekly losses near 8.5% and month-to-date losses exceeding 15%.

The cryptocurrency’s market capitalization fell from roughly $1.27 trillion the previous day to about $1.24 trillion, erasing close to $30 billion in value.

On-chain analytics firm Glassnode reported that more than 8 million bitcoins were at unrealized losses, meaning those coins were last moved or bought at prices higher than current market levels.

Derivatives markets saw widespread liquidations. Total crypto liquidations reached about $467.5 million, with long positions accounting for roughly $364.5 million. For bitcoin specifically, liquidations included about $104 million in long positions and nearly $27 million in short positions. That reversed the prior 24-hour period, when roughly $240 million in shorts were liquidated versus $42.5 million in longs.

Market participants pointed to rising hostilities in the Middle East as a key factor behind the price move. Reports noted a spike in clashes between Israel and Iran and said the U.S. president posted on social media about responding to the downing of an Apache attack helicopter by Iranian forces. Multiple commercial carriers reportedly moved to evacuate their fleets from Tehran and clear Iranian airspace amid concerns of a larger military strike.

The drop erased gains recorded 24 hours earlier and reduced short-term cost bases in the spot market. Trading after the low showed attempts at recovery, while price and liquidation figures indicated ongoing pressure on both leveraged and spot positions.