Bitcoin plunged to $59,000 amid a surge in the US dollar index: Massive liquidation and panic selling
On the evening of June 24, the cryptocurrency market experienced a sharp decline: Bitcoin dropped to $59,060. The main catalyst for this movement was the strengthening of the US Dollar Index (DXY), which reached a 13-month high. At the time of writing, the leading cryptocurrency has partially recovered, trading around $61,700.
Most altcoins in the top 10 followed the flagship. Ethereum is holding near $1,650, BNB is trading at $570, and SOL is around $70. However, the overall picture in the market remains extremely tense.
According to CoinGlass data, the volume of liquidations in the cryptocurrency market exceeded $1 billion over the past 24 hours. Of this, $780 million came from long positions, indicating massive long closures and high volatility.
The Crypto Fear & Greed Index has dropped to a critical level of 12, signaling extreme fear among market participants.
Situation Analysis: Capitulation or Accumulation?
Technical analyst João Wedson notes that Bitcoin is attempting to exit the capitulation phase. However, according to him, we are not yet seeing the extreme scenario characteristic of past cycles, when miners suffered significant losses and the asset entered a deeply oversold zone. "If this happens in the coming months, we can be sure the period will be short, and only a few will be able to accumulate assets," the expert adds.
At the same time, CryptoQuant data shows that inflows to Bitcoin accumulation addresses have reached an all-time high. This indicates panic selling by retail investors, who are actively dumping coins, while large players are absorbing supply at record rates. The psychological gap between the two sides is widening to extreme levels.
MN Trading founder Michaël van de Poppe emphasizes that for Bitcoin to return to an uptrend, it needs to close the week above the 200-week moving average (200-WMA), which is currently around $63,000. Until this happens, the market remains vulnerable.
It is worth noting that US spot Bitcoin ETFs have closed in the red for the sixth consecutive week. As of June 18, net capital outflows from these instruments amounted to $90.66 million, adding pressure to the market.
My professional view: The current situation resembles a "weak hands shakeout" phase, where retail investor panic creates ideal conditions for institutional accumulation. However, a sustainable reversal requires macroeconomic catalysts—primarily a weakening of the US dollar. As long as the DXY continues to rise, Bitcoin remains under pressure, and the key level for recovery remains $63,000.