Bitcoin ETF Liquidations Looming as Price Tests $60,000: Analyst

Cryptocurrency

Bitcoin

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Liquidation

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Summary:

Bitcoin's price has fallen 14% in the past four weeks, nearing the crucial $60,000 level.
The average entry price for U.S. spot Bitcoin ETFs is estimated to be between $60,000 and $61,000, potentially triggering a wave of liquidations if the price breaks below this range.
Institutional investment in Bitcoin ETFs has yet to materialize, with recent data showing that 80% of inflows came from existing crypto market participants.
Sell-offs by miners, old wallets, and Germany's divestment of crypto holdings have exacerbated Bitcoin's decline.
Despite BlackRock's initial claims, institutional investors haven't entered the market in force.

Bitcoin's recent decline has pushed it towards the critical $60,000 level, raising concerns about potential liquidations in U.S. spot BTC ETFs. Markus Thielen, founder of 10x Research, estimates that the average entry price for these ETFs is between $60,000 and $61,000, making a break below this level a trigger for liquidations. This is particularly concerning as institutional investors haven't yet entered the market in force, despite initial claims from BlackRock. Recent sell-offs by miners, old wallets, and Germany's divestment of crypto holdings have further amplified downward pressure. Bitcoin's price has dropped by 14% in four weeks, trading at $60,200 after dipping below $60,000 earlier Friday morning.