Bitcoin Flash Crash To $61K Triggers $1.1B Liquidation Wave

Bitcoin flash-crashed to an intraday low near $61,503 after losing the $72,000 level, turning a sharp correction into one of the market’s heaviest liquidation events of the year.

BTC had traded near $74,000 earlier in the move before sellers drove the price through $70,000, $65,000 and then into the low-$61,000 area. The drop marked Bitcoin’s weakest level since late February and came with a broader crypto reset that also pushed Ethereum toward $1,730.

The move triggered more than $1.1 billion in leveraged crypto liquidations over 24 hours, with long positions carrying most of the damage. Once Bitcoin lost the mid-$60,000 zone, forced selling accelerated as margin positions were closed across major derivatives venues.

The latest move extends the same pressure behind the earlier Bitcoin selloff: ETF outflows, weaker spot demand, risk-capital rotation, corporate treasury stress and heavy leverage sitting above obvious support levels.

54,000 BTC Move Onto Trading Platforms

On-chain analyst Ali Martinez highlighted that more than 54,000 BTC moved onto trading platforms over the past week, adding roughly $3.78 billion in available supply at the time of the chart.

Exchange inflows do not mean every coin is immediately sold. They do mean more BTC becomes easier to sell, lend, post as collateral or use in derivatives strategies. During a falling market, that extra exchange-side supply can put more pressure on order books just as leveraged buyers are being liquidated.

The timing made the flow more important. Bitcoin was already breaking down from $72,000, ETF demand had weakened, and traders were watching for forced selling below $65,000. The added BTC on trading platforms gave the market another reason to treat the move as a supply-driven flush rather than a normal pullback.

MVRV Bands Put $54K To $50K In View

Ali Martinez’s MVRV Pricing Bands chart now puts Bitcoin in a weaker technical position after the breakdown below $72,000. The next major on-chain support area sits between $54,000 and $50,000 if BTC fails to reclaim the mid-$60,000 range.

MVRV compares Bitcoin’s market value with its realized value, helping traders track where price sits against the network’s aggregate cost basis. It is not a guaranteed target, but it gives the current selloff a lower support map after several key levels failed in quick succession.

A recovery above $65,000 would reduce immediate pressure. Another rejection below that zone would keep the $54,000 to $50,000 area in focus, especially if exchange inflows stay elevated and spot buyers remain cautious.

Mt. Gox Adds Another Supply Headline

The selloff also arrived as Mt. Gox wallet activity returned to the market’s radar. Wallets tied to the collapsed exchange moved 116.3 BTC to Bitstamp after a larger cold-wallet transfer, adding another repayment-related headline while BTC was already trying to stabilize.

The Mt. Gox Bitstamp transfer was small compared with daily Bitcoin volume, but it landed at the wrong moment. Traders are already watching exchange inflows, ETF redemptions and liquidation data, so any repayment-linked transfer can add to short-term caution.

Bitcoin’s market-cap slide has also pushed it lower in the global asset table. BTC recently fell to 14th among global assets, showing how quickly the drawdown has hit Bitcoin’s standing against mega-cap equities and AI-linked names.

BTC Needs To Reclaim The Mid-$60K Zone

Bitcoin’s next test is simple. Holding above $61,000 keeps the move in bounce territory. Reclaiming $65,000 would give buyers a cleaner short-term reset. Failure to recover that area leaves the market exposed to another liquidity sweep toward $60,000 and then the MVRV support band between $54,000 and $50,000.

The flash crash was not driven by one isolated headline. The move came from several pressures hitting together: $3.78 billion in exchange-side BTC supply, weak ETF demand, leveraged longs getting wiped out, Mt. Gox repayment anxiety and broken support below $72,000.

Bitcoin has bounced from the low, but the market is not clean yet. The next 24 to 48 hours will show whether the $61,000 flush cleared leverage or opened the door to a deeper move into the next on-chain support zone.

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