Bitcoin tumbles to new multi-year low of $58,000, but a short-squeeze setup emerges
CoinDesk 2026-06-25 15:03:08
Context: Bitcoin's price plummeted to a new multi-year low of $58,000 on June 25, 2026, in early U.S. trading, marking a 5% drop. This significant decline has led to a crowded short positioning in derivatives markets, setting up conditions for a potential short squeeze. The cryptocurrency market's downtrend comes as the Federal Reserve signals a likely rate hike, while tech stocks experience mixed results.
Key Facts
- Bitcoin's price quickly dropped 5% to $58,000 in early Thursday U.S. trading, its lowest level since 2024, before bouncing to $59,400, down 2.5% over the past 24 hours.
- Derivatives and order-book data show crowded short positioning and stronger buy orders below the market, suggesting conditions are ripe for a short squeeze despite bitcoin's ongoing downtrend.
- The liquidation heatmap indicates a bulk of clustered liquidation risk above current prices, not below, meaning a move to the downside is unlikely to be amplified by a cascade of forced selling, with the real danger being for those positioned short.
- Open interest has risen roughly 0.28% over the past 24 hours, even as the price fell by around 3%, signaling that traders aren't closing their shorts, they're doubling down and betting on a breach of the $58,000 level of support.
- There is a total of 6,900 BTC ($409 million) in bids on the order book between the current price and $50,000, while there are just 1,570 BTC ($93 million) in resting sell orders between the current price and $70,000, creating a bullish skew in terms of supply.