Bitcoin $BTC ( ▲ 6.12% ) is facing mounting pressure as capital continues to exit the market, pushing the price below $65,000 and slashing its market value nearly in half from October’s peak. Sentiment has turned sharply negative, with losses building beneath the surface even as the asset remains far above prior cycle lows.
Analysts say unrealized losses have reached levels reminiscent of the 2022 downturn, signaling that the current correction may be evolving into a broader structural retracement rather than a brief pullback.
ETFs bleeding, leverage getting wiped out
Institutional flows are moving in the wrong direction. Bitcoin ETFs have recorded nearly $1 billion in outflows this month alone, extending a five-week streak totaling about $3.8 billion. At the same time, forced liquidations across crypto markets have surged, with hundreds of millions of dollars in positions wiped out in a single day, most of them bullish bets.
Heavy short interest clustered near the psychologically important $70,000 level suggests traders remain skeptical of a near-term breakout. Without improving macro conditions, analysts expect capital to favor lower-risk assets, potentially keeping bitcoin trapped in a range.
Miners cash out to chase AI
Adding to the selling pressure is a shift in miner behavior. Some companies are liquidating bitcoin reserves to fund diversification into AI infrastructure, a sign that even industry insiders are prioritizing new growth avenues over holding crypto.
Bitdeer $BTDR, a former major miner, recently sold its entire bitcoin stash to finance an AI pivot, citing the need for liquidity to pursue power-intensive projects. Historically, miner selling has often coincided with late-cycle stress, as firms shore up balance sheets during downturns.
There are also concerns that other corporate holders with weaker finances could be forced to sell, creating a feedback loop of supply hitting the market.
One buyer refuses to blink
Not everyone is retreating. Strategy $MSTR ( ▲ 6.07% ) continues to double down, announcing its 100th bitcoin purchase since launching its accumulation strategy in 2020. The company now holds more than 700,000 coins, funded in part by issuing new shares, a move that weighed on its stock.
This contrast highlights a market split between entities strengthening balance sheets and those leaning into long-term conviction. Whether bitcoin stabilizes may depend on which side proves more influential in the months ahead.