After the bitcoin fell again by $60,000, the encryption market dropped significantly. As prices have fallen to low levels since October 2024, market sentiment has rapidly weakened, and the associated encryption concept unit is simultaneously under pressure.

24-hour liquidation close to $870 million.

Reports indicate that bitcoin fell by 4.2 per cent during the day. The CoinGlass data show that over the past 24 hours, a total of 169,531 traders have been liquidated, with a market-wide liquidation of $869.39 million.

Of these, multiple losses are most concentrated, with more than one hour of liquidation amounting to approximately $785.3 million, or most of the total liquidation. This indicates that the previous positions on the bets rebounded and were quickly squeezed out after the price was lost.

Shares associated with the movement of encrypted assets have also fallen. The stock price of Strategy (MSTR) went down to a low level since February 2024, while some highly volatile encrypted related assets continued to refresh the low point.

The chain institutions point to ETF outflows and losses.

According to Glassnode, the chain-based analyst, several factors were present behind the fall, including the continued outflow of bitcoin cash ETF, the concentration of investors in losses, and the increase in options market defense positions.

Glassnode also noted that current overall market demand remained weak and that new purchases were insufficient, implying that prices were not sufficiently affordable in the lower stages.

Market view towards prudence

The founder of Barstools, Dave Portnoy, wrote on social platforms that the market was falling and that those who supported the long-term rise of Bitcoin needed to respond to external questions about its value. The statements reflect a marked deterioration in current market sentiment.

The economist Henrik Zeberg suggests risks from a macro-level perspective. He stated that when Bitcoin fell by $60,000, the United States dollar index DXY was still close to a relatively low of 101. If the subsequent United States dollar continues to strengthen, risk assets may be under greater pressure.

He also stated that the market was not yet ready to tighten even stronger dollar liquidity. For the encryption market, short-term fluctuations may remain high if the funds continue to flow back to dollar assets.