BTC flushes $1.76B in leverage but bottom remains…

Bitcoin tested an intraday low of $61,349, triggering $1.76 billion in liquidations — more than $1.5 billion absorbed by long positions — before bouncing toward the mid-$63,000s. The Crypto Fear & Greed Index collapsed to 12, funding rates flipped deeply negative, and open interest reset sharply. The forced-selling phase is largely complete; the voluntary-selling phase is not.

Why it matters

Bitget Wallet research analyst Lacie Zhang argues the technical cleanup was real: the liquidation wave cleared the most crowded bullish leverage from the order book, and the shift to deeply negative funding rates signals the bias has rotated from overheated longs to defensives. Zhang also notes Bitcoin's 24/7 structure compressed what equity markets — the Dow down 1.2%, S&P 500 down 0.7%, Nasdaq down 0.9% over the same window — may take weeks to absorb. On that read, crypto may already be closer to clearing this macro episode than traditional markets, though a retest of $55,000–$57,000 remains plausible if ETF outflows persist.

Market impact

Nansen's Nicolai Sondergaard flags that BTC and ETH both recorded net exchange inflows in the 24 hours following the $61,000 bounce — participants using the recovery as exit liquidity. US spot Bitcoin ETFs extended their outflow streak to 13 consecutive sessions, accumulating roughly $4.4 billion in withdrawals. Standard Chartered's Geoffrey Kendrick maintained a $100,000 year-end 2026 BTC target but warned a break below $60,000 risks triggering a fresh selling wave with no visible floor beneath it. The short-term holder cost basis near $76,400 is the level to watch for stronger confirmation that buyers have returned in size.