Bitcoin fell to $61,300 before recovering to around $62,500, amid $3 billion in liquidations over two days. Open interest dropped 8.5% to $111.4 billion, indicating leveraged position unwinding. Derivatives markets show strong bearish sentiment: put skews have strengthened, with the $60,000 strike put on Deribit holding over $1 billion in notional open interest. Solana's open interest surged to a record despite price declines, suggesting aggressive short accumulation. Implied volatility for bitcoin and ether has risen, reflecting demand for hedging. Altcoins like NEAR, ZEC, and JUP fell over 13%. The broader market is under pressure from geopolitical uncertainty and a shift of capital to AI narratives. A break below $60,000 could trigger further liquidations. Compounding concerns, Reza Bundy of Atlas Capital warns of a potential 70% drawdown for bitcoin within six months, though he remains long-term bullish.

Key facts

• Bitcoin fell to $61,300, then recovered to ~$62,500; $3B liquidated in two days.
• Open interest dropped 8.5% to $111.4B, signaling unwinding of leveraged positions.
• $60K put on Deribit has over $1B in open interest, showing bearish sentiment.
• Solana open interest hit record 72.16M tokens as price fell, indicating short accumulation.
• Reza Bundy warns of potential 70% BTC drawdown in six months, but long-term bullish.

KeyAudit data perspective