Deribit COO: $60K Bitcoin Level Critical for Cost Basis and Derivatives
Bitcoin's price is approaching $60,000 amid record ETF outflows, making this level a key support to watch, according to Jean-David Péquignot, COO of Deribit. He explains that $60,000 is not just a psychological round number but a structural threshold with real consequences for institutions and derivatives traders. A significant portion of institutional money, including ETF buyers and short-term speculators, purchased Bitcoin between $60,000 and $67,000 over the past year. If the price falls below their cost basis, unrealized losses may force rushed selling, especially as AI stocks rally and opportunity costs rise. Additionally, over $1.2 billion in notional open interest is tied to $60,000 strike put options on Deribit. Market makers are short gamma, meaning they will need to sell spot Bitcoin or futures to hedge as the price nears $60,000, potentially accelerating the selloff. Leveraged longs also pose a risk: a break below $60,000 could trigger cascading liquidations, worsening downside momentum. Péquignot notes that billions in leveraged longs have already been liquidated this week, and a further decline could rapidly erode collateral metrics.
Key facts
- Bitcoin nears $60,000 amid record ETF outflows
- Institutional buyers' cost basis between $60K-$67K at risk
- Over $1.2B notional open interest at $60K strike puts on Deribit
- Market makers short gamma, forced to sell to hedge
- Leveraged longs risk cascading liquidations below $60K