Bitcoin Falls Below $65,000 as ETF Outflows and Rotation to AI Weigh on Price
Bitcoin traded near $65,000 after breaking below $70,000, with CoinDesk-cited data showing $1.8 billion in liquidations and options demand building at $60,000 and $50,000 strikes. Analysts attribute the slide to spot ETF outflows, capital rotating into AI stocks and upcoming IPOs, and uncertainty over U.S. crypto legislation.
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The Break Below $70,000
Bitcoin fell to as low as $64,987 in a session that put the largest cryptocurrency at its lowest level since February and down roughly 12% over seven days, according to Bitcoin Magazine. CryptoSlate data showed a lower intraday low of $65,404 over the prior 24 hours, with about $1.8 billion in liquidations as bullish leveraged positions were unwound. The sources differ on the exact low, but agree the move cleared the $70,000 level that had acted as both a psychological floor and a target for forced liquidations.
The decline followed a failed weekend rebound. Bitcoin briefly reached about $73,400 after U.S. President Donald Trump suggested a naval blockade would be lifted and April core PCE inflation matched expectations at 3.3% year over year. That relief faded when Iran's foreign ministry denied nuclear talks and said the Strait of Hormuz would reopen on its own timeline, and the spot volume needed to sustain the bounce did not arrive.
Demand Shifts Toward Downside Protection
CryptoSlate reported that options demand has built around the $60,000 and $50,000 strikes, a sign that traders are hedging against a deeper reset rather than positioning for a quick recovery. Bitcoin Magazine Pro data identifies $63,000 to $64,000 as initial support, where bids appeared in February and March, with $60,000 as the next major psychological level and $58,000 beyond it.
Bitcoin Magazine notes this is the third test of the February 6 panic low. The two earlier tests, on February 24 and March 29, were followed by sharp recoveries above $70,000. Analysts cited there say seasonal weakness, which has historically concentrated in summer months, gives bulls little near-term help.
Competing Explanations for Outflows
The sources disagree on the main driver. CryptoSlate points to the loss of spot ETF demand and to Strategy's first bitcoin sale in years as factors that removed support. Strategy confirmed it sold 32 BTC for about $2.5 million to fund dividends on its perpetual preferred stock, and CryptoSlate quotes commentary that the sale unsettled a holder seen as a permanent, price-agnostic buyer. Bitcoin Magazine challenges that framing, arguing the sale is a convenient narrative attached to a trend already underway. Citi analyst Alex Saunders said the sale was anticipated and does not change the firm's broader view.
Bitcoin Magazine instead frames the selloff as a competition problem. Charles Schwab's Jim Ferraioli told CoinDesk that bitcoin is losing its status as the dominant momentum trade, and said capital is moving into AI stocks, gold, and IPOs from SpaceX, OpenAI, and Anthropic. Citi estimates spot ETF flows account for roughly 45% of weekly BTC price variation, and those flows have turned negative. Citi also flagged weaker prospects for the Clarity Act, a U.S. crypto market structure bill.
Sanctions and Macro Overhang
Bitcoin Magazine cites a further source of selling: U.S. action against Iran's digital asset ecosystem. Treasury Secretary Scott Bessent announced the freezing of more than $1 billion in Iranian crypto assets last week, and the U.S. sanctioned Nobitex, Iran's largest crypto exchange, on Tuesday over alleged ties to the Islamic Revolutionary Guard Corps. Neither source quantifies how much this has contributed to recent flows.
Why It Matters
For Traders
Support near $63,000 to $64,000 and the $60,000 options strikes are the levels to watch over the next few sessions, as the third test of the February low may decide direction.
For Investors
Negative spot ETF flows and weakening legislative prospects suggest institutional demand, not just sentiment, is the variable to monitor over coming months.
For Builders
Sharp volatility and liquidation cascades around key levels underscore the need to stress-test lending and perpetuals protocols against sub-$65,000 scenarios.
This article is for information only and is not financial advice. Read the full disclaimer.
