Bitcoin Price Falls to $63k as Riot Platforms Sells BTC to Fund AI
Bitcoin (BTC) price is down 0.61% to $63k, underperforming a flat broader market, primarily driven by a cascade of leveraged long liquidations and news that cryptocurrency mining platforms timed their holdings.
Reflecting weak sentiment, BTC dipped amid a derivatives-driven long squeeze, with over $1 billion in liquidations since Monday forcing leveraged positions to unwind.
A buildup of leveraged long positions, particularly on Binance, where open interest rose to $8.15 billion, met with downside volatility. This triggered a cascade, with over $262 million in total crypto liquidations in 24h and bitcoin-specific longs accounting for $34 million.
The simultaneous drop in price and open interest signals longs were forcibly exited. The market is flushing out over-leveraged optimism, creating a cleaner, albeit weaker, price structure. A stabilisation in open interest and funding rates would signal the squeeze is over.
U.S. spot Bitcoin ETFs saw $192 million in back-to-back outflows, their first consecutive drawdown since late July. This removed a key source of institutional demand and confirmed bearish sentiment, with the Fear & Greed Index at 36.
Without ETF inflows as a buffer, Bitcoin becomes more vulnerable to sell-side pressure from derivatives and macro concerns. A reversal to daily ETF inflows could be a key signal of renewed institutional support.
Technically, BTC broke below its daily trendline and is testing the 78.6% Fibonacci retracement level near $63,228. The immediate swing low is $62,226. The next key trigger is the persistence of ETF flows.
If BTC holds $62,226, a rebound toward the 61.8% Fib level at $64,015 is likely. However, a break below that support, coupled with ongoing ETF outflows, could see a swift move down to target the $60,000–$62,500 zone where $2.8 billion in liquidity sits.
