Bitcoin Slides Nearly 20% in June as $715M in Crypto Long Bets Collapse

Bitcoin briefly plunged to a new year-to-date low of $58,035 on Thursday morning before staging a relief rally to trade flat around $59,500. Despite recovering its 24-hour losses, the intra-day chart reveals severe volatility and erratic price swings.

• Key Takeaways:
• • Bitcoin erased its plunge to a 2026 low of $58,035 on Thursday morning, staging a rapid relief rally.
• • Forced liquidations across the crypto market topped $1 billion, wiping out $484 million in bitcoin bets.
• • Boris Alergant of Babylon Labs warns that AI competition may pressure bitcoin prices through the summer.

Volatility Grips Bitcoin After Fresh YTD Low

After plummeting to a fresh year-to-date (YTD) low of $58,035 Thursday morning, bitcoin rebounded to erase its 24-hour losses. While the flat net performance paints a stable picture, the daily chart tells a different story—revealing violent price swings that triggered the moment bitcoin crossed below $59,000 on Wednesday.

Data shows bitcoin breached $61,000 less than three hours after tumbling to what was then its YTD low. Although it subsequently dropped below this level, the cryptocurrency traded close to it until shortly after midnight, when another rally eventually pushed it past $61,800. While it lost momentum before reaching $62,000, it nonetheless managed to hold above $61,000 until 9:20 a.m. EDT.

While its plunge to $58,000 took less than 30 minutes, a relief rally saw the cryptocurrency reclaim $59,000 about half an hour later. At the time of writing (1:42 p.m. EDT), the top cryptocurrency traded slightly above $59,500, translating to a mere 0.4% drop over 24 hours. This marginal drop left its market capitalization still under the $1.2 trillion mark.

With the June curtain closing, bitcoin is increasingly poised to clock 30-day losses north of 20% and leave the first half of 2026 bleeding out by more than 30%. The retreat exposes just how far the mighty have fallen; since scaling an all-time high of over $126,000 in October 2025, bitcoin has seen more than half of its peak value utterly erased.

A Crypto Crisis or a Macro Realignment?

Meanwhile, on the derivatives market, bitcoin’s price action over 24 hours saw $484 million in leveraged positions liquidated, with long bets accounting for approximately 70%, or $339 million. Overall, the crypto economy saw $1.01 billion in leveraged positions wiped out, with long bets accounting for $715 million.

As bitcoin continues to slide to fresh yearly lows, investor panic is palpable, forcing many to scramble for the exits. However, seasoned analysts argue this is a macro story, not a fundamental failure. Boris Alergant, head of GTM at Babylon Labs, maintains that the sell-off mirrors a broader, market-wide risk-off reset rather than an isolated crypto event. If anything, Alergant suggests, this volatility proves bitcoin is no longer an island—it is deeply integrated into the traditional financial machine.

“It reacts to liquidity, rates, positioning, and institutional flows in the same way other major macro assets do. Near term, I do think the market could remain under pressure through the summer. AI has been absorbing a significant amount of investor mindshare, capital, and talent that might otherwise have flowed into crypto. With major AI companies moving closer to the public markets, there also appears to be some repositioning happening across growth and technology exposure more broadly,” Alergant said.