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Bitcoin Plunges to Low $60,000s as Market Structure Breaks Down

Record withdrawals from U.S. spot ETFs forced sales of underlying Bitcoin that triggered a massive derivatives liquidation wave and steep price falls.

Overview

  • Bitcoin fell to intraday lows near $61,400 on Thursday as selling pressure from institutions and leveraged traders accelerated the decline.
  • U.S. spot Bitcoin ETFs logged their longest consecutive outflow streak, with roughly $1 billion pulled this week, forcing authorized participants to sell actual BTC into the market.
  • Derivatives liquidations wiped out roughly $1.5–1.76 billion in 24 hours and closed more than 200,000 positions, with Bitcoin accounting for over $800 million of losses.
  • On-chain data showed large transfers to exchanges, including about 54,000 BTC flagged by analysts, and MicroStrategy disclosed a small sale of 32 BTC that traders viewed as a bearish signal even though it was too small to cause the liquidation cascade.
  • Market watchers warn that technical indicators are deeply oversold but say the current setup is short-heavy so a pause in selling could trigger a rapid short squeeze while near-term direction will hinge on continued ETF flows, exchange inflows, derivatives open interest, and geopolitical developments.