Bitcoin fell to $61,100 on Friday, wiping out about $335 million in leveraged long positions and triggering a wave of short trades concentrated between $63,000 and $66,000. Roughly $2.6 billion in short exposure now sits in that range, leaving bearish traders vulnerable if prices rebound.
A further 8% decline toward $57,000 could lead to another $1.2 billion in liquidations. On the upside, any recovery could force short sellers to cover positions, potentially driving a سريع rebound.
Etf outflows reshape market sentiment
The decline comes as U.S.-listed spot Bitcoin ETFs recorded a prolonged stretch of withdrawals, marking 13 consecutive days of outflows totaling about $4.4 billion. This sustained capital exit has weakened a key source of demand that had previously supported prices.
A small inflow of about $3 million briefly interrupted the trend, but it has not been enough to shift overall sentiment. Market positioning remains cautious as traders watch for signs of renewed inflows.
Derivatives signal growing bearish positioning
Perpetual futures funding rates have dropped to negative 2%, indicating that short positions are now paying to stay open. This is a stark contrast to the typical positive range of 6–12%, reflecting a retreat by leveraged bulls and a rise in bearish sentiment.
At the same time, the reduction in bullish leverage could ease selling pressure, leaving room for volatility in either direction.
Broader market weakness adds to pressure
Bitcoin’s pullback has coincided with a decline in the Nasdaq 100, suggesting that macro factors are also weighing on prices. The index dropped after Broadcom lost 12.6% in a single session, erasing around $280 billion in market value following a reduced AI chip sales forecast.
Other semiconductor stocks also moved lower, with Micron falling 7.8% and Arm declining 4.5%, as traders adjusted to upcoming listings from SpaceX, Anthropic, and OpenAI. These developments appear to have tightened liquidity across markets, adding pressure on Bitcoin.
Strategy sale adds uncertainty
Market attention also focused on a reported sale of 32 BTC by Strategy, valued at roughly $2.5 million. While small compared to the company’s holdings of more than 843,000 BTC, the move raised questions after long-standing messaging that it would not sell.
Outlook hinges on liquidity and sentiment
If ETF inflows resume or broader market fears ease, a move toward $66,000 could trigger a short-covering rally. For now, Bitcoin remains caught between liquidation risks on the downside and the potential for a squeeze-driven recovery above key resistance levels.
Amid sharp BTC drops and heavy liquidations, learn key funding rate signals that can hint at the next market reversal.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
