Bitcoin Plunges 17% in Four Days, Analysts Eye Possible Drop to $50K Range
Bitcoin fell roughly 17% from nearly $74,000 on Monday to an intraday low of $61,556 on Thursday, triggering $4.47 billion in total crypto liquidations, with bullish bets accounting for $3.82 billion (93% of all positions). Derivatives and options data reveal weak demand and increased downside protection bets. The Coinbase premium has been negative since late April, widening from May 26, suggesting weak U.S. institutional demand. Bitcoin's 30-day 25-delta skew collapsed to -9.4, indicating investors are paying premiums for put options. Open interest fell from 282,000 BTC to 265,000 BTC since June, while spot and perpetual cumulative volume delta dropped, indicating new short positions. Analysts see potential for another leg lower into the $50,000s, with a bottom possible in three to six months. On-chain models suggest Bitcoin could move below $60,000, with the realized price near $54,000 as the next support. Prediction market Myriad gives a 70% chance Bitcoin's next major move will take it to $55,000 rather than $84,000. Standard Chartered's head of crypto research views the sell-off as a buying opportunity.
Key facts
- Bitcoin dropped 17% from Monday to Thursday, hitting $61,556 intraday low.
- Total crypto liquidations reached $4.47 billion, 93% from bullish bets.
- Derivatives data show weak institutional demand and increased downside protection.
- Analysts see potential drop to $50K range, bottom in 3-6 months.
- Standard Chartered calls sell-off a buying opportunity, citing ETF holdings strength.