Opinion: $60,000 is not just a key psychological level for Bitcoin, but also a structural threshold

Odaily Planet Daily News Bitcoin price is approaching the key support level of $60,000. If it breaks below, it may trigger accelerated selling.

Jean-David Péquignot, Chief Commercial Officer of Deribit, stated that $60,000 is not only a psychological whole number but also a structural threshold, which has a tangible impact on institutional investors and the derivatives market. Over the past year, a significant amount of institutional funds, including ETF buyers, large holders, and short-term speculators, have purchased BTC at prices between $60,000 and $67,000. As the price approaches these buying ranges, investors are almost at the breakeven point. Once it falls below the cost price, unrealized losses will increase. Especially when traditional markets such as AI stocks are rising, the opportunity cost of holding BTC increases, which may prompt investors to accelerate selling.

The derivatives market is also under pressure. Deribit data shows that put options with a strike price of $60,000 and a notional value of approximately $1.2 billion are still outstanding. Market makers need to hedge their risks and may be forced to sell spot or futures, thereby accelerating the decline. At the same time, there are still a large number of leveraged long positions in the system. Breaking below $60,000 could trigger a chain of liquidations, intensifying market selling pressure. Péquignot believes that billions of dollars in leveraged long positions have been liquidated this week. If the $60,000 support level is lost, the downward momentum may further amplify, forming a rapid and chaotic sell-off situation. (CoinDesk)