Analysts: Leveraged liquidation is driving this round of decline; $60,000 is a key support level for Bitcoin.

Min Jung, Associate 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 those surrounding tariffs and resurgent geopolitical uncertainty, are exacerbating risk aversion towards digital assets. Jung added, "It's noteworthy that cryptocurrencies have underperformed recently, even as traditional risk assets have remained relatively resilient. This divergence suggests that this sell-off is not purely driven by macro factors, but also reflects weak marginal demand, thinning liquidity, and ongoing deleveraging within the crypto-native market." Andri Fauzan Adziima, Head of Research at Bitrue, stated, "We've seen massive long liquidations, hundreds of millions of dollars wiped out, persistently negative funding rates, a sharp decline in open interest, and a clearly bearish bias in the futures market. Short-term holders have suffered heavy losses, but long-term holders haven't yet begun large-scale selling; on-chain HODL signals indicate that some are quietly accumulating positions during strategic risk-averse." Adziima points out that the $60,000-$63,000 range is a key support area for Bitcoin. If the price can hold steady at or above this level, the market could benefit from the damage inflicted on short sellers by negative funding rates, creating conditions for a classic "cleansing-out short squeeze." The analyst adds that a potential easing of macroeconomic conditions or the return of ETF funds could further support this move. (The Block)