Bitcoin sentiment deteriorated sharply, triggering a wave of forced liquidations exceeding $1 billion, the most severe market pressure in recent months.
Bitcoin fell as much as 6% on Tuesday, breaking below $67,000 for the first time since April 5th. Geopolitical risks from the ongoing situation in Iran, coupled with selling actions from major holder Strategy, jointly dampened investor risk appetite. According to CoinGlass data, the scale of forced liquidations in this round reached its highest level since February this year.
Simultaneously, the two major traditional sources of demand that have historically supported Bitcoin's price—spot ETFs and Strategy—are concurrently turning into drags on the price, further intensifying market pressure.
Strategy's Selling Triggers Sentiment Turning Point
Strategy disclosed on Monday that the company sold approximately 32 bitcoins, raising about $2.5 million, marking its first reduction in holdings since late 2022. Compared to its total Bitcoin position of about $59 billion, the scale of this sale is minuscule. However, it broke the company's long-standing "only buy, never sell" minimalist strategy at a sensitive moment for the market.
Jasper De Maere, an over-the-counter trader at market maker Wintermute, stated:
"This selling wave appears to have been triggered by Strategy's disclosure of selling 32 bitcoins. But the reality is that even without this news, market momentum was already waning, and institutional participation on OTC desks had also receded to low levels."
Sustained ETF Net Outflows Heighten Price Fragility
According to data compiled by Bloomberg, U.S. spot Bitcoin ETFs have recorded net outflows for 11 consecutive trading days, setting a record for the longest consecutive outflow streak. During this period, investors redeemed a total of approximately $3.5 billion.
James Butterfill, Head of Research at CoinShares, pointed out that the price cushioning effect brought by the advancement of U.S. crypto regulatory legislation has been "completely offset" by safe-haven sentiment triggered by the situation in Iran.
Bitcoin is now down nearly 50% from its all-time high of approximately $126,000, which was set in October last year. Meanwhile, Wall Street stocks continue to rise amid a resurgence in AI trading and expectations of a ceasefire agreement, forming a stark contrast with the crypto market.
