$1.6 Billion Liquidated — Bitcoin Rebounds to $61,000
By John Nada·Jun 6, 2026·4 min read
Bitcoin rebounds to $61,000 following $1.6 billion liquidations. Market dynamics shift with strong U.S. jobs report.
Bitcoin rebounded to $61,000 after a massive $1.6 billion in liquidations rattled the crypto market. It wasn't just Bitcoin shaking off the dust. The swift dip to $59,227 overnight was a jolt, but buyers swiftly stepped back in, stabilizing the token after a sharp selloff triggered by a strong U.S. jobs report. CoinDesk detailed how nonfarm payrolls painted a robust picture, realigning market expectations around Federal Reserve rate hikes.
The market's reaction was swift and brutal, not just for crypto. The Nasdaq 100 plunged about 5%, its steepest fall since April 2025, fueled by a bitter downturn in AI and chipmaker stocks. The S&P 500 wasn't immune either, dropping 2.6% and halting what could've been a tenth straight weekly gain. Bitcoin, like stocks, took a hit but rebounded as traders eyed the crucial $60,000 support level closely.
Yet, Bitcoin wasn't the only casualty in the crypto landscape. Other tokens like Ether and Solana saw deeper red, down 21.6% and 23.7% over the week, respectively. CoinDesk noted that even Hyperliquid's HYPE, which had withstood much of the recent market bleed, succumbed to a 9.9% fall.
The selling frenzy culminated in the liquidation of around $1.6 billion in positions over 24 hours. Bitcoin and Ether bore the brunt, with $534 million and $423 million in liquidations, respectively. Zcash, caught in its own turmoil due to a bug in its Orchard privacy pool, added $115 million in losses, CoinDesk reported.
This isn't just about crypto; it's a story of intertwining markets. As swaps shift to now price a Fed rate increase by the end of 2026, the ripple effect is felt across asset classes. The dollar surged, two-year Treasury yields climbed 12 basis points to 4.16%, and risk assets took a beating.
Bitcoin’s quick rebound above $61,000 showcases its resilience amid volatile market conditions. Traders had been closely monitoring the $60,000 mark, a psychological barrier and technical support level that had been tested as Bitcoin slid amid ETF outflows and Strategy's first bitcoin sale since 2022. However, the overnight break below didn't result in a broader collapse, indicating strong buyer support at lower levels.
The U.S. nonfarm payrolls report, which exceeded expectations, played a pivotal role in the selloff across various markets, including stocks and cryptocurrencies. The robust jobs data prompted traders to reassess their outlook on interest rates, leading to a sharp repricing of Federal Reserve expectations. The anticipation of a rate hike by the end of 2026 marked a significant shift from the previously expected cuts, reflecting a more hawkish stance under the newly confirmed chair Kevin Warsh.
The broader market environment added to the pressure on risk assets. The Nasdaq 100's sharp 5% decline marked its most significant drop since April 2025, heavily influenced by a downturn in AI and chipmaker stocks. The S&P 500 also experienced a setback, falling 2.6% and breaking its streak of weekly gains, underlining the interconnectedness of traditional financial markets and cryptocurrencies.
As the dust settled, Bitcoin's recovery served as a reminder of its capacity to withstand short-term shocks, even as other cryptocurrencies like Ether, Solana, XRP, Dogecoin, and BNB faced substantial weekly losses. The broader crypto market landscape remained challenging, with Ether dropping to around $1,575 and Solana plummeting to $63, representing declines of 21.6% and 23.7%, respectively.
The liquidation event, impacting approximately 308,000 traders, highlighted the leverage-induced volatility characteristic of the crypto markets. Long positions accounted for a significant portion of the $1.6 billion liquidated, with Bitcoin and Ether experiencing the largest losses. This high level of leverage underscores the inherent risks in crypto trading, particularly in times of heightened market uncertainty.
Zcash's situation was particularly acute, exacerbated by a bug in its Orchard privacy pool, contributing to a 44% price collapse and $115 million in liquidations. This incident underscored the technical vulnerabilities and challenges faced by privacy-focused cryptocurrencies, which often encounter unique risks alongside broader market forces.
Looking ahead, market participants are keenly observing Bitcoin's ability to maintain its position above $60,000, a level that could serve as a pivotal battleground in the coming days. A decisive break below this threshold might reignite bearish sentiment, pushing the token into levels not seen since the February drawdown.
Meanwhile, the interconnectedness of global financial markets remains evident, as illustrated by Arthur Hayes, co-founder of BitMEX, who recently divested his entire Worldcoin stake. His decision was influenced by a sharp decline in pre-listing prices for SpaceX shares, further demonstrating the complex web of factors influencing investor behavior across different asset classes.
As markets digest the latest developments, the focus will remain on macroeconomic indicators and regulatory shifts that could impact the trajectory of cryptocurrencies. The evolving narrative around interest rates, coupled with Bitcoin's resilience, will continue to shape market dynamics as traders navigate an environment characterized by both opportunity and risk.