View: $60,000 is not just a psychological round number for Bitcoin, but a structural threshold

Odaily Planet Daily News: Bitcoin’s price is approaching the key support level of $60,000, and a break below could trigger accelerated selling.

Jean-David Péquignot, Chief Commercial Officer at Deribit, stated that $60,000 is not only a psychological round number but also a structural threshold, having a practical impact on institutional investors and the derivatives market. Over the past year, a large amount of institutional capital, including ETF buyers, whales, and short-term speculators, purchased BTC between $60,000 and $67,000. As the price approaches these buying ranges, investors are nearly at the break-even point. Once the price falls below their cost basis, unrealized losses will increase. Especially when traditional markets like AI stocks are rising, the opportunity cost of holding BTC increases, which may prompt investors to accelerate sell-offs.

Pressure also exists in the derivatives market. Deribit data shows that approximately $1.2 billion in notional value of put options at the $60,000 strike price remain open. Market makers need to hedge their risks and may be forced to sell spot or futures, thereby accelerating the decline. Meanwhile, there are still a large number of leveraged long positions in the system. A break below $60,000 could trigger a chain of liquidations, intensifying market selling pressure. Péquignot believes that billions of dollars in leveraged long positions have already been liquidated this week. If the $60,000 support level fails, the downward momentum could amplify further, leading to a rapid and chaotic sell-off. (CoinDesk)