Bitcoin (BTC) Plunges Below $62K Amid Record ETF Withdrawals and $1.5B Liquidation Wave

Key Highlights

• Bitcoin plummeted beneath $62,000, reaching its lowest point in nearly four months and trading approximately 50% below its peak.
• Cryptocurrency markets witnessed over $1.5 billion in forced liquidations within a 24-hour period, with Bitcoin accounting for more than $800 million.
• American spot Bitcoin ETFs recorded nearly $1 billion in net withdrawals during the week, continuing an unprecedented outflow trend.
• Market observer Ali Charts identified 54,000 BTC transferred to trading platforms last week, representing around $3.78 billion in potential sell pressure.
• Strategy, holding the largest corporate Bitcoin position, conducted its initial BTC sale in almost four years, sparking concerns about its holding strategy.

Bitcoin experienced a significant downturn during Thursday’s Asian trading session, momentarily dropping to $61,442 before showing modest recovery toward $63,832. This decline represented the cryptocurrency’s weakest performance in approximately four months, positioning the asset roughly 50% beneath its October all-time high.

The price collapse sparked widespread forced liquidations throughout cryptocurrency markets. Data from CoinGlass reveals that over 208,000 market participants faced liquidation during the preceding 24-hour window. Bitcoin positions represented more than $800 million in liquidated value, with Ethereum contributing an additional $386 million. Combined liquidations across the crypto sector exceeded $1.5 billion.

Research analysts at Presto Research observed that Bitcoin’s underperformance throughout the year has aligned with strong advances in both precious metals and AI-focused equities. With market participants tempering their forecasts for Federal Reserve interest rate reductions, investment capital has migrated toward these alternative assets.

Cryptocurrency analyst Ali Charts highlighted a concerning trend through social media channels, noting that 54,000 BTC — valued at roughly $3.78 billion — transferred to exchange platforms during the previous seven days. He explained that this surge in accessible supply generated immediate selling momentum, depressing prices to $65,300 when the observation was shared.

Institutional Withdrawal Trend Continues

Institutional appetite remains notably subdued. American spot Bitcoin ETFs have experienced approximately $1 billion in net capital flight this week alone, based on SoSoValue tracking. Wednesday witnessed roughly $396 million in single-day withdrawals.

Across the most recent three-week period, institutional market participants have withdrawn a cumulative $3.7 billion from Bitcoin exchange-traded products. Significant portions of this capital have migrated toward artificial intelligence equities, which provide corporate earnings fundamentals and participation in a rapidly expanding technology sector that Bitcoin lacks.

Escalating U.S.-Iran tensions have compounded market stress. Growing geopolitical uncertainty has amplified risk-off sentiment across financial markets. Dollar inflows strengthened on projections that extended conflict could trigger energy-driven inflation, which subsequently pressured speculative holdings including cryptocurrencies.

Strategy Breaks Four-Year Accumulation Pattern

Strategy, maintaining the world’s largest corporate Bitcoin treasury, divested a segment of its BTC portfolio this week — marking its initial sale in almost four years. Despite the relatively modest transaction size, the decision transmitted bearish sentiment throughout markets.

The divestment has reignited debate surrounding the sustainability of Strategy’s balance sheet approach, which fundamentally relies on continued Bitcoin price appreciation.

Presto Research analysts suggested that Bitcoin’s potential rebound may depend less on cryptocurrency-specific catalysts and more on declining inflation pressures and renewed investor interest in liquidity-sensitive asset classes.

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