Institutional Liquidation + Forced Selling Cascade, Is Bitcoin's Next Stop the 50,000s?
Bitcoin experienced significant volatility, falling toward the $60,000 support level before rebounding on Friday. Analysts warn that institutional investors are selling off cryptocurrency holdings aggressively, potentially driving Bitcoin further down to the $40,000–$50,000 range.
U.S. Bitcoin ETFs have seen a sharp reversal, with data indicating a shift from net buying to net selling. According to Markus Thielen of 10X Research, ETF investors who entered at an average cost of $90,000 are now facing substantial losses and are capitulating.
The sell-off may have been triggered by highly leveraged positions in funds like BlackRock’s IBIT being liquidated, exacerbating market pressure. Over $2 billion in crypto positions were liquidated on Thursday alone, with an additional $800 million on Friday.
Bitcoin’s decline correlates with a broader drop in tech stocks and risk assets. Having fallen more than 40% from its all-time high, some analysts predict further downside, with a potential retreat to $50,000 or lower after a brief consolidation or minor recovery.
华尔街日报02/06 12:18