Bitcoin Liquidation Risk Rises as Price Falls Below $64K

Bitcoin (BTC) experienced a decline in its price on April 25 due to a sudden reaction to geopolitical news, causing a loss of up to 5% for the bulls. The price of BTC remains sensitive to developments in the Middle East. Data from Markets Pro and TradingView shows that BTC was attempting to find support at $64,000 before the Wall Street market opened. The dip to $63,575 prior to the previous daily close was a result of renewed tensions in the Middle East. CoinGlass, a monitoring resource, reported an increase in liquidity on both sides of the spot price across various crypto exchanges. There was a large number of asks, starting at $64,765 and ranging up to $67,700. On the downside, there was relatively little interest in bids at $63,500—the local low.

Bitcoin managed to fill one of the two CME Group futures gaps with its recent decline. A popular trader named Daan Crypto Trades commented on the current state of the market, noting the healthy funding rates as a sign of a slow but steady recovery in the BTC price. This trader believes that maintaining this stability is crucial in order to establish a solid foundation for future growth.

Trading firm QCP Capital reported a shift in crypto sentiment on low-timeframes in its market updates. The company mentioned that the market expects the upside of BTC to be limited and that the spot price will consolidate in the short term. This indicates that traders anticipate a period of stability and consolidation before any significant price movements occur.

In the United States, spot Bitcoin exchange-traded funds (ETFs) experienced net outflows on April 24. The outflows were primarily driven by the Grayscale Bitcoin Trust (GBTC), while the largest ETF offering from asset manager BlackRock saw no inflows—an uncommon occurrence. On April 30, spot ETFs are set to begin trading in Hong Kong, which marks another milestone in Bitcoin’s institutional adoption.

Bitcoin’s price reacted negatively to geopolitical news, resulting in a decline for the bulls. The market is currently anticipating a period of consolidation before any major price movements occur. The outflows from US Bitcoin ETFs, including the Grayscale Bitcoin Trust, suggest a temporary decrease in investor interest. The upcoming launch of spot ETFs in Hong Kong indicates a growing institutional adoption of Bitcoin.