Bitcoin flash crashes to $60,000, traders refuse to catch ‘falling knives’: analysts

Bitcoin experienced a sharp flash crash to $60,000 on Thursday night, marking its lowest level since September 2024 and representing a roughly 17% drop in 24 hours, which led to $817 million in liquidations in four hours and $2.67 billion over 24 hours, primarily from long positions. Analysts attribute this to a "perfect storm" of forced liquidations from over-leveraged longs, institutional outflows from spot Bitcoin ETFs (over $800 million in two days), and a broader risk-off macroeconomic environment. Market sentiment is currently in "extreme fear," according to the CMC index. Traders are refusing to "catch falling knives," prioritizing capital preservation and selling into rallies, as repeated failures to hold support levels have shifted behavior from buying the dip to waiting for confirmation. For a recovery, analysts suggest Bitcoin needs to stabilize between the critical support range of $58,000 to $60,000.

(Source：The Block)