Bitcoin slips below $63,000 as $122M in long positions liquidated

Bitcoin's slide below $63,000 wiped out $122 million in leveraged long positions, extending a deleveraging cycle that has already cleared 44 percent of the market's long imbalance.

$122 million in long positions were liquidated as Bitcoin dropped to $62,912 on Aug. 13, recovering above $63,000.

"The deleveraging is not necessarily finished," analyst Ardi said, noting that Bitcoin's cumulative Longs & Shorts Delta has fallen from more than $400 million to $226 million, a 44 percent decline. The combination of falling price alongside declining open interest indicates existing leveraged longs are being closed or liquidated rather than traders aggressively building new shorts, according to Ardi's analysis using Hyblock's framework.

Total crypto liquidations reached $227 million following an uptick in volatility after a virtually flat Wednesday close, with Bitcoin's market cap at $1.26 trillion. The liquidation cascade follows a July CPI report that matched expectations — headline inflation rose 0.1 percent month over month and 3.4 percent annually, while core inflation eased to 2.5 percent year over year. Futures markets lowered the probability of a September rate hike to approximately 38 percent, down from 46 percent before the release. Despite the softer inflation print, Bitcoin failed to sustain gains, slipping below key moving averages with the RSI at 42 and MACD in negative territory.

Bitcoin remains net long on the cumulative Longs & Shorts Delta measure, leaving room for another leverage flush if BTC loses support around the low-$60,000 region. The next test is the $63,000 level; a break below could trigger a retest of the Aug. 3 swing low at $62,185, with further downside toward the July 6 low of $61,228. Investors now turn to the Federal Reserve's Jackson Hole gathering later in August, followed by the Sept. 4 employment report and the Sept. 11 inflation release.

Leverage Cleanup, Not Fresh Shorts

The transmission chain from macro data to on-chain flow is clear. July's CPI print reduced rate-hike odds, yet Bitcoin's price action remained weak. Open interest declined sharply alongside the price drop — a signature of position unwinding rather than new bearish positioning. Hyblock's framework tracks cumulative Longs & Shorts Delta as the cumulative change in estimated net long and short positioning, making it useful for identifying shifts in derivatives exposure.

Bitcoin has already demonstrated that the low-$60,000 region is not an absolute floor. BTC briefly traded below $60,000 at the end of June and again around the beginning of July before recovering toward the mid-$60,000s. If the remaining long imbalance is large enough, another move toward that region could trigger additional forced selling before leverage resets.

Macro Calendar Takes Center Stage

The CPI report contained details that could allow the Fed to remain patient. Shelter costs rose only 0.1 percent, energy prices declined 1.5 percent, and gasoline fell 2.9 percent. Some goods categories are beginning to move beyond tariff-related price increases from the previous year.

Maksym Sakharov, co-founder and CEO of debanking infrastructure provider WeFi, said one release will not settle the argument over the inflation path. "The first market move says more about leverage than conviction," he said. "Until the Fed gives markets a clearer policy path, CPI days will keep producing sharp reversals and forced exits."

Unexpected weakness in employment or inflation could improve expectations for looser monetary policy and provide support for risk-sensitive assets such as Bitcoin. A separate signal offers a more constructive backdrop. Bitcoin's correlation with gold has returned to levels consistent with its "digital gold" positioning, according to Ardi, suggesting the asset is again trading as a macro hedge rather than a pure risk asset.

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