Bitcoin back above $61,000 after rout leads to $1.6 billion liquidations

Bitcoin recovered to above $61,000 after plunging to $59,227 overnight, triggered by a stronger-than-expected U.S. jobs report that sparked a broader market selloff across equities, bonds, and crypto assets, resulting in $1.6 billion in liquidations.

The sharp pullback in Bitcoin reflects the cryptocurrency market's sensitivity to macroeconomic data and risk sentiment. A strong jobs report typically signals economic resilience but can paradoxically trigger selling in risk assets when it raises expectations for higher interest rates or delayed rate cuts. This dynamic played out Friday as the Nasdaq 100 fell approximately 5%, demonstrating synchronized weakness across multiple asset classes.

Bitcoin's vulnerability to macro shocks has intensified as institutional participation and leverage in crypto markets have grown. The $1.6 billion in liquidations indicates substantial leveraged positions were forced to unwind, amplifying the initial price decline. This cascading effect—where liquidations trigger further selling—explains the sharp move from $59,227 to recovery above $61,000 within a brief timeframe.

The recovery itself signals technical support levels are holding and that some market participants view this pullback as a buying opportunity rather than a directional reversal. However, the episode underscores Bitcoin's ongoing correlation with broader financial markets, particularly U.S. interest rate expectations. As long as macro uncertainty persists around Federal Reserve policy, crypto volatility tied to economic data releases will likely continue.

Investors should monitor upcoming inflation data and Fed communications for clues about rate trajectories. The speed of recovery suggests underlying demand remains intact, but the violent liquidations highlight the risks posed by excessive leverage during high-volatility periods.

• →A stronger-than-expected jobs report triggered a multi-asset selloff, with Bitcoin declining to $59,227 before recovering above $61,000.
• →$1.6 billion in liquidations occurred as leveraged positions unwound during the sharp decline.
• →Bitcoin continues to move in lockstep with equity markets and macro risk sentiment, particularly around U.S. interest rate expectations.
• →Technical support held during the rout, with buyers stepping in at lower prices to support recovery.
• →Elevated leverage in crypto markets amplifies volatility during macroeconomic shocks and data releases.