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Bitcoin Sinks Below $71,000 as Liquidations Surge and ETF Outflows Mount

ETF redemptions alongside forced deleveraging deepened the risk-off slide, leaving sentiment in extreme fear.

Overview

  • Bitcoin briefly touched roughly $70,700 before stabilizing in the low $70,000s, returning to price levels last seen in 2024.
  • Roughly $650 million in crypto positions were liquidated over 24 hours, with Bitcoin accounting for about 41% and long positions bearing the brunt as open interest fell.
  • Spot Bitcoin ETFs have recorded about $1.1 billion in net outflows this month, and a negative Coinbase premium points to weak U.S. spot demand.
  • A selloff in tech shares, particularly AI-linked names, has weighed on risk assets, adding pressure to crypto markets.
  • Analysts are split, with some calling the drawdown typical of past cycles while others warn a continued unwind could test near $60,000 as fear gauges sink to extreme levels.