Bitcoin Longs Wiped Out as Price Dips Below $101K
On June 7, 2025, Bitcoin witnessed a massive $160 million long liquidation event on Binance, marking one of the largest leverage resets this year. As BTC briefly fell below the $101,000 mark, heavily leveraged long positions were forcefully liquidated.
This sudden wipeout triggered extreme short-term volatility but historically signals a “capitulation” phase — often followed by a recovery.
Binance Registers Over 4,000 BTC in Outflows
In the aftermath of the sell-off, Binance recorded over 4,000 BTC in outflows, indicating that investors are pulling coins off exchanges—a common behavior seen during early accumulation phases.
These outflows suggest a strategic shift by large holders (often referred to as “smart money”) aiming to secure assets in cold wallets, anticipating a potential rebound.
Since the last major deposit spike on May 22, exchange outflows have consistently exceeded inflows, reinforcing the trend of growing long-term accumulation.
Long-Term Holder Realized Cap Hits $37 Billion
While short-term traders absorbed heavy losses, long-term holders (LTHs) remained steadfast. According to on-chain data, the LTH Realized Cap — a metric that measures the cost basis of long-held Bitcoin — has now exceeded $37 billion, its highest level since June 2023.
This divergence between short-term panic and long-term conviction reflects a healthy structural reset in the market.
Key Takeaways From CryptoQuant’s Report
CryptoQuant’s latest analysis outlines three major implications of the recent crash:
- Leverage Reset: The liquidation at $101K flushed out overleveraged traders, reducing downside risk.
- Exchange Outflows Signal Accumulation: Ongoing BTC withdrawals from Binance point to long-term confidence.
- LTH Strength: Growing realized cap shows strong conviction among experienced holders, despite short-term turbulence.
Is a Rally Coming?
While retail sentiment remains cautious, the underlying data suggests Bitcoin may be entering a stronger phase. With lower leverage, growing accumulation, and robust long-term holder behavior, the foundation is being laid for a more sustainable uptrend.
These indicators don’t guarantee immediate gains, but they do highlight improving market health — and hint at potential upside in the weeks ahead.
