Analyst: Leverage Liquidations Drive This Round of Decline, $60,000 is Bitcoin's Key Support Zone

Odaily News Min Jung, Deputy Researcher at Presto Research, stated that Bitcoin's drop below $63,000 appears to reflect a broad deterioration in cryptocurrency market sentiment, rather than a single fundamental catalyst. In the short term, macro headlines, particularly surrounding tariffs and resurfacing geopolitical uncertainties, are exacerbating risk-off sentiment in digital assets.

Jung added: "It is noteworthy that cryptocurrencies have recently underperformed even as traditional risk assets have remained relatively resilient. This divergence suggests this is not purely a macro-driven sell-off; it also reflects weak marginal demand, thinning liquidity conditions, and ongoing deleveraging within the crypto-native market.

Andri Fauzan Adziima, Head of Research at Bitrue, said: "We have seen massive long liquidations, with hundreds of millions of dollars wiped out, persistently negative funding rates, a sharp decline in open interest, and a clear bearish bias in the futures market. Short-term holders are suffering significant losses, but long-term holders have not yet begun large-scale selling; on-chain HODL signals show that accumulation is quietly happening amidst strategic de-risking."

Adziima pointed out that the $60,000-$63,000 range is a key support zone for Bitcoin. If the price can stabilize at or above these levels, the market might benefit from the pain inflicted on shorts by negative funding rates, creating conditions for a classic 'short squeeze after a washout.' The analyst added that potential easing of macroeconomic conditions or a return of ETF inflows could further support this move. (The Block)