Bitcoin gets slammed by $1B in liquidations and record BlackRock outflows — brace for more downside
Bitcoin plunged below $73,000 after U.S. strikes on Iran triggered $1 billion in forced liquidations. At the same time, BlackRock's Bitcoin ETF saw its second-biggest daily withdrawal ever—$528 million—and Bitcoin miners are ramping up deposits to exchanges, a sign they may be preparing to sell.
Idea
Three red flags are stacking up for Bitcoin at the same time. First, the Iran crisis wiped out nearly $1 billion in leveraged bets, which tends to leave behind damaged sentiment and forced sellers. Second, BlackRock's Bitcoin ETF just had its second-worst day of outflows ever, meaning big institutional players are pulling money off the table. Third, Bitcoin miners—the original holders—are sending unusually large amounts of Bitcoin to exchanges, which historically signals they plan to sell and adds selling pressure. With the Fed also sounding hawkish on inflation, risk assets like crypto face multiple headwinds at once.