Bitcoin slid to an intraday low of $61,349 early Friday, wiping out over $1.76 billion in leveraged positions across exchanges. Long positions accounted for more than $1.5 billion of that total, according to data tracked by the sector. The Crypto Fear & Greed Index tumbled to 12 — deep into extreme fear territory — as the selloff accelerated through the week.
The liquidation cascade
The flush cleared out crowded bullish leverage in a single brutal move. Funding rates turned deeply negative, and open interest reset sharply. Lacie Zhang at Bitget Wallet argued the $1.76 billion wipeout cleaned the slate, clearing positioning that had become dangerously one-sided. “The funding-rate shift shows cleaner positioning now,” she said. But the reset isn't complete: analysts note leveraged long positioning has not fully normalized, leaving the door open to more pain.
ETF outflows deepen
US-traded spot Bitcoin ETFs extended their outflow streak to 13 consecutive sessions, with total withdrawals reaching roughly $4.4 billion. That steady drip of institutional money leaving the market has been a key weight on price. Nansen analyst Nicolai Sondergaard said net exchange inflows for both BTC and ETH picked up after the bounce, suggesting traders are using the recovery as exit liquidity. He noted the institutional bid that helped drive Bitcoin from $50,000 to $126,000 earlier this year has been pulling back since May and will return slowly due to compliance cycles.
Key levels in play
The $60,000 level remains the immediate psychological test. A break below that could open a move toward $55,000 to $57,000, especially if ETF outflows persist. But the probability of that bear case is narrowing as technical conditions reset, according to analysts. Standard Chartered's Geoffrey Kendrick maintained his year-end 2026 Bitcoin target of $100,000, saying the selling may be over. He warned, however, that a slide under $60,000 could trigger fresh selling with no natural floor underneath. On the upside, recovery to the mid-to-high $60,000s would signal early traction, while a reclaim of $76,400 — the short-term holder cost basis — would offer stronger confirmation of a trend shift.
Bitcoin's seven-day drop stands at 13%. The 7-day Spot Volume Delta hit its weakest level since February, underscoring that spot sellers have dominated order books. For now, the market waits to see whether this is the capitulation that resets the cycle, or just the first act of a deeper correction.
