Bitcoin defends $59K as Q2 closes with rare back-to-back loss

Bitcoin fell below $60,000 over the weekend, trading at $59,940 as of Sunday, down 0.6% in 24 hours and nearly 7% on the week, as the second quarter neared its final days with the asset on track for a rare back-to-back quarterly loss.

"The combination of persistent ETF outflows, a hawkish Fed under Chair Kevin Warsh, and a US dollar near a seven-month high has created a sustained headwind that crypto has been unable to shake," said Nina Volkov, crypto markets analyst at Edgen. "The back-to-back quarterly loss breaks from Bitcoin's historical pattern of second-quarter strength."

The selloff accelerated after Strategy reported its smallest weekly Bitcoin purchase in about 18 months — just 520 BTC for roughly $35 million — while selling $335.5 million in equity shares, with about $300 million going to rebuild its cash position to $1.4 billion. Derivatives data showed more than $850 million in crypto long positions liquidated over the past day, including over $400 million tied to Bitcoin after it lost the $60,000 level, according to Coinglass. Altcoins fell harder: ether dropped 9.5% on the week to about $1,567, dogecoin lost 11.7% to $0.073, and XRP slid 8.7% to $1.04, while solana held relatively better at $70, off 3.5%.

The $59,000 level has emerged as the critical support to watch. A break below it could trigger another wave of long liquidations toward the $58,000 and $57,300 liquidity pockets, with technical setups on the four-hour chart projecting a potential decline toward $54,000. On the upside, a dense cluster of short liquidations between $61,700 and $62,300 makes that zone the next target if buyers regain control. The quarter's largest options expiry — roughly $9.06 billion in Bitcoin and $1.57 billion in ether contracts settling on Deribit — adds another layer of volatility as traders position for the third quarter.

$850M in Longs Wiped as Leverage Unwinds

The liquidation cascade accelerated after Bitcoin lost the $60,000 handle, with Coinglass data showing over $400 million in BTC long positions alone were closed in the past 24 hours. The forced deleveraging pushed open interest lower across major exchanges, though funding rates have yet to turn deeply negative — a sign that the unwind may not be complete.

Strategy's slowing purchase pace added to the pressure. The company's weekly 520 BTC acquisition was its smallest since late 2024, and its stock traded below the cost basis of its Bitcoin reserves, a dynamic that historically precedes further equity weakness. The perpetual preferred stock STRC, carrying an 11.5% annual dividend, also fell below $100, drawing comparisons on social media to failed yield products — though analysts noted Strategy's $1.4 billion cash reserve provides ample coverage for dividend obligations.

Macro conditions offered no relief. The US dollar index climbed to a 13-month high, while gold slipped below $4,000 for the first time in seven months as capital rotated into AI-related equities following strong earnings from memory-chip maker Micron. Spot Bitcoin ETF outflows have persisted since mid-June, with no signs of reversal as institutional demand remains muted.

Traders now watch whether the $59,000 support holds into the weekly close. If it does, the path of least resistance points to a squeeze toward the $61,700-$62,300 short-liquidation cluster. A breakdown, however, opens the door to the $54,000 zone — a level that aligns with Glassnode's 1.0 MVRV pricing band and the measured target from the rounded-top pattern on the four-hour chart.

This article is for informational purposes only and does not constitute investment advice.