On June 24, $700 million long positions were liquidated on the crypto market. A Bitcoin [BTC] Sell-offs led to fearful market conditions and chasing speculative long positions in an attempt to buy the dip.
The leading crypto traded below $60k again, and more losses seemed likely.
Demand for Bitcoin has been drying up for months
In a post on X, analyst Ali Martinez showed that BTC’s apparent demand was negative 208 days. The metric measures whether spot demand is strong enough to absorb the supply of new mining production and the old supply to the exchanges.
Negative values indicate that selling pressure is greater than demand, creating significant resistance to price increases.
AMBCrypto reported that while Bitcoin OI had fallen from its 2025 highs, volatility remained high.
The Coinbase Premium Index has been negative for more than a month, indicating a lack of investor demand in the US. Continued outflows from spot ETFs showed a lack of confidence as price action continued to weaken.
Crypto analyst Axel Adler Jr. noted that the net realized income statement has been negative for five months. This metric uses the difference between realized profit and loss and the 90-day moving average to smooth the data.
The continued state of realized losses that the market witnessed in 2026 is characteristic of bear market cycles. A similar scenario also developed in mid-2022.
Did on-chain data foreshadow Bitcoin’s latest sell-off?
The basis for the recent losses was visible as early as February, crypto analyst PelinayPA claimed on CryptoQuant. The Miner’s Position Index had risen from March to Juneand was there -0.15 now.
Although negative, it showed that miners were moving relatively more coins to exchanges. It was also accompanied by increased Miner-to-Exchange flows. Together they showed that more supply was ready for sale.
In retrospect, yes 20/20but the signals were there. The realized price of $53,888 represents the average cost basis for BTC, making it the next price target and a significant support level.
Final summary
- Bitcoin’s latest price drop was caused by increased long leverage and subsequent liquidation.
- Weakening demand and multi-month trends in realized losses showed that holders were under enormous pressure.