Bitcoin suffered a sharp sell-off on June 2, plunging 6% in a single day. The decline triggered a cascade of leveraged long liquidations, totaling $1.25 billion across major exchanges, according to data from Coinglass.
The abrupt downturn shifted sentiment dramatically in the derivatives arena. Options traders began pricing in deeper downside, with the $50,000 level re-emerging as a prominent bearish target. The level had last served as a key support during the corrective phase earlier this year.
While the liquidation storm was concentrated in Bitcoin perpetual swaps and futures, Ethereum and other major altcoins also edged lower, though their declines were relatively contained. The single-day wipeout of over a billion dollars in leveraged bets marked the largest liquidation event in two weeks, underscoring overheating momentum just below the local top.