Bitcoin took a heavy hit this week, dropping 13% to trade at $66,004 after regulators rejected a proposed spot Bitcoin ETF. The decision poured cold water on hopes for fresh institutional demand, and the market responded swiftly. Realized losses surged to $1.35 billion per day — a level that underscores just how many holders are now selling at a loss.
ETF rejection sours sentiment
The SEC’s denial wasn’t entirely unexpected — the agency has been cautious on crypto products — but it still landed like a gut punch. Many traders had been positioning for approval, betting that a green light would unlock billions in new capital. Instead, the rejection reinforced the bearish mood that’s dogged crypto markets for months. Bitcoin had already been under pressure, and the news accelerated the sell-off.
Spot sellers take the wheel
The data from on-chain analytics shows that spot sellers are driving this leg down. It’s not just futures liquidations — people are actually moving coins onto exchanges and selling them outright. The daily realized loss figure of $1.35 billion is the highest in weeks, and it suggests that weak hands are capitulating. That kind of volume typically marks either a bottom or a pause, but there’s no sign of buying support yet.
Bear phase isn’t new
Let’s be blunt: the market was already fragile before this week. Bitcoin had been trading in a range, but momentum kept grinding lower. The ETF rejection just confirmed the downside view for many. Spot dominance is a bearish signal — it means there’s no artificial leverage inflating the price, but also no strong bid from buyers. The picture is one of slow attrition, punctuated by sharp drops like today’s.
What’s next for BTC?
All eyes are now on whether the $66,000 level holds. A break below could open up a test of the mid-$50,000s — a zone that hasn’t been touched since late 2025. On the flip side, if buyers step in around here, it might stabilize. But with sentiment this sour and the ETF door slammed shut for now, the path of least resistance still looks lower. The next few days will tell us whether this is a washout or the start of a deeper slide.
