Bitcoin crashed and flushed leverage out, but is the bottom here yet?
Bitcoin fell to an intraday low near $61,349, triggering about $1.76 billion in liquidations, mostly long positions, before rebounding into the mid-$63,000s. The flush sharply reset leverage: funding turned deeply negative, open interest dropped, and fear hit extreme levels. That suggests crowded bullish positions were cleared, but durable demand has not yet returned. Analysts still see downside risk. Glassnode says spot sellers remain dominant and there is no clear evidence of sustained buying. Nansen notes BTC and ETH posted net exchange inflows after the bounce, often a sign of traders using strength to sell. U.S. spot Bitcoin ETFs have also seen 13 straight days of outflows, totaling about $4.4 billion, weakening the institutional bid that drove earlier gains. Near term, $60,000 is the key line. A break below it could open a move toward $55,000-$57,000. A stronger recovery would require ETF outflows to slow, exchange inflows to fade, whales to absorb supply, and spot buying to take over.
