Bitcoin initially dropped in early Thursday trading, touching a low of $59,175 before rebounding to around $61,500. According to CoinDesk data, this recent decline triggered nearly $1 billion in futures liquidations across major crypto assets, including Bitcoin, Ethereum, and Solana.
The backdrop of market pressure is not complicated. Traders generally attribute the pressure to the Fed’s hawkish stance, six consecutive weeks of ETF net outflows, thin summer liquidity, and the quarterly options expiration on June 30. Since reaching a high near $65,500 on Monday, Bitcoin has declined by approximately 10%.
Clearing is concentrated on long positions.
Among these, approximately $430 million in long positions related to Bitcoin futures were automatically liquidated. Wintermute previously identified $59,000 as a key bearish support level to watch.
CoinGlass data also shows that approximately $1.6 billion in leveraged long positions are clustered below $58,000. If the price falls below this level again, market volatility could intensify further.
AI chip stocks provide support
Trading in AI chips has also moved in tandem with the crypto market. SK Hynitz disclosed plans to list in the U.S., aiming to raise approximately $29 billion. Samsung and Kioxia also rose in early trading on Thursday. Previously, AI-related stocks had declined amid concerns that the spending boom might be cooling.
Currently, Micron’s performance is viewed by the market as a sign that demand remains resilient. The rebound in AI chip stocks has also contributed, to some extent, to stabilizing risk assets.
Monitor PCE data
Next, the market will turn its attention to the PCE inflation data released on Thursday, one of the Federal Reserve’s most closely watched price indicators, which could continue to influence the short-term movements of crypto assets and U.S. tech stocks.