Riya Sehgal, Research Analyst, Delta Exchange
Bitcoin’s fall below $70,000 and then toward the $66,000 zone has triggered panic across leveraged positions, with nearly $1.5 billion in liquidations since Monday adding fuel to the move.
On-chain data showing heavy loss realization by recent Bitcoin buyers, along with rising exchange inflows from retail and mid-sized investors, suggests that weaker hands are again moving coins to trading venues, increasing the risk of renewed distribution.
Also, recent market research has pointed to capital rotating toward U.S. equity themes such as AI, defense and energy, with high dispersion in equities concentrating liquidity in select market pockets and temporarily draining risk appetite from Bitcoin.
At the same time, crypto treasury flows have weakened sharply, with May inflows falling to $180 million, the lowest since October 2024, showing that institutional demand has also cooled.
Technically, Bitcoin remains weak below $68,500 and $70,000. A sustained break below $66,000 can open downside toward $65,000-$64,000. Ethereum has also lost key support after slipping below $1,950, with $1,840-$1,820 now the immediate support band. A reclaim of $1,950-$2,000 is needed to stabilise sentiment. Until then, volatility is likely to remain elevated, though a relief rebound is possible if forced selling cools and liquidity rotates back into crypto
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