Bitcoin’s price downturn intensified after a wave of forced liquidations swept the Bitcoin futures market, with about $211.04 million in long positions liquidated, undermining price support across the crypto space. Overall, the entire cryptocurrency market fell about 4% in the session, led by Bitcoin’s weakness. Ethereum dropped more than 5%, underperforming the broader market, while Vitalik Buterin reportedly sold about $3.67 million worth of Ether over two days, denting investor sentiment. Analysts say the near-term outlook hinges on Bitcoin defending the $65,000 level to cap further declines.
A break below the year’s low around $2.17 trillion in market capitalization could accelerate the downturn. The market’s correlation with gold stood at -0.72, underscoring a negative relationship amid risk-off conditions. In addition, about $38 billion flowed out of the U.S. spot Bitcoin ETF over the past five weeks, contributing to downward pressure.
Experts caution that a sustained recovery would require renewed ETF inflows and a reduction in leveraged futures exposure. Investors are watching whether Bitcoin can stabilize at $65,000 as a potential base for a rebound, though crypto investments remain highly volatile and carry elevated risk.
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