The cryptocurrency market started the last trading day of the week with a sell-off. The sharp pullback in Bitcoin negatively impacted Ethereum and the altcoin market in general.
The Bitcoin price fell to levels as low as $61,000 during the week, testing its weakest levels in recent months. Outflows from US spot Bitcoin ETFs, liquidations in leveraged trading, and a general flight from risky assets are cited as the main reasons for the selling pressure in the market.
The volatility in the derivatives market, in particular, attracted attention. According to Bitcoin System Liquidation data, a large number of leveraged positions were liquidated during the recent decline, with the closure of mostly long positions causing the drop to be felt more severely. This picture shows that the market pullback was fueled not only by spot sales but also by forced closures in leveraged transactions.
On the on-chain side, the Coinbase Premium Index continues its weak performance. The fact that this indicator remains in negative territory suggests that US-based investors and institutional demand are not showing strong buying appetite in the short term. Especially when considered alongside spot ETF outflows, the weakness on the Coinbase side stands out as one of the key indicators explaining why Bitcoin’s recovery has been limited.
Exchange net inflows are also closely monitored in terms of investor behavior. Increased inflows of Bitcoin to exchanges are generally interpreted as a strengthening of selling pressure, while outflows from exchanges indicate a tendency for investors to hold onto their BTC. In the current situation, the volatility in net inflows reveals that investors remain cautious in the short term and that the market continues to search for a clear direction.
The outlook for Ethereum is not much different from Bitcoin. While the ETH price continues its weak trend, losses in altcoins are felt more sharply. The high dominance of Bitcoin indicates that investors are exiting risky altcoins and moving towards assets they perceive as safer.
In the short term, the market will once again focus on Bitcoin’s critical support levels. BTC maintaining its position above $62,000 is considered important for strengthening rebound buying. However, a break below this level risks deepening selling pressure towards $60,000 and below.
Overall, a cautious atmosphere persists in the cryptocurrency market. For a strong recovery, a slowdown in ETF outflows, a decrease in liquidation pressure, a calming of exchange net inflows, and a return to positive territory for Coinbase Premium will be critical.
*This is not investment advice.
