Bitcoin BTC $61,875 continued its descent Thursday, with the largest cryptocurrency by market capitalization trading dangerously close to the closely-watched $60,000 level amid record exchange-traded fund outflows that have sapped demand for digital assets.

Market Context

The move comes as broader risk assets sold off sharply on the back of Broadcom's disappointing AI chip outlook. The Nasdaq slid lower for a third consecutive session, dragging Asian equities down and pulling crypto markets along for the ride. The semiconductor sector weakness rippled across global markets, with several regional currencies also declining in a broad risk-off shift that has hurt cryptocurrency sentiment.

The selloff in bitcoin has been part of a wider rotation out of digital assets and into artificial intelligence-linked equities that have dominated global risk appetite throughout 2026. Bitcoin and major altcoins extended steep weekly losses as the AI trade that has driven markets for months faltered—but not before draining capital from crypto positions, according to traders.

Analysis

Analysts at Deribit, the leading crypto options exchange, say $60,000 represents more than just a round-number psychological threshold. The level carries structural significance because a significant portion of institutional capital—ETF buyers, large holders, and short-term speculators—purchased bitcoin between $60,000 and $67,000 over the past year.

"As price undercuts their cost basis, the resulting unrealized losses may incentivize rushed selling, especially as the opportunity cost of holding BTC rises against a surging AI equity sector," said Jean-David Péquignot, chief commercial officer at Deribit.

Michael Saylor, executive chairman of Strategy (MSTR), the largest publicly traded bitcoin holder, has also attributed recent losses to capital rotation away from cryptocurrency toward AI-adjacent equities. The dynamic creates mounting pressure on holders who bought near current price levels, as opportunity costs rise when traditional tech stocks rally sharply.

The derivatives market adds another layer of mechanical selling risk below $60,000. On Deribit alone, there is over $1.2 billion in notional open interest sitting at the $60,000 strike put options—contracts that pay out if prices fall below that level. Investors purchased these puts as hedges against a prolonged decline.

The problem: market makers who are short these puts are now exposed to what traders call "short gamma." As bitcoin approaches $60,000, these dealers must sell spot BTC or futures to hedge their positions and balance their books. Other things being equal, this hedging activity can accelerate the downward move, turning an orderly correction into a chaotic cascade.

"With leverage still not fully flushed from the system, a break of $60K could rapidly worsen collateral metrics, triggering a cascading wave of automated long liquidations," Péquignot warned.

Key Numbers

- Bitcoin trading around $61,875, approaching critical $60,000 support

- Record ETF outflows pressuring spot BTC demand

- Over $1.2 billion in notional open interest at the $60,000 strike put options on Deribit

- Institutional cost basis concentrated between $60,000 and $67,000

- Billions of dollars in leveraged longs already liquidated this week alone

What to Watch

Traders should monitor whether bitcoin can hold the $60,000 level as a floor. A decisive break below could trigger automatic hedging from market makers holding short gamma positions, accelerating selling pressure. The interaction between ETF flow data and derivatives positioning will be critical—if outflows continue while open interest remains elevated, the conditions exist for further downside volatility.

Key levels to watch include the $60,000 psychological support and the $57,500-$58,000 range where additional leveraged long liquidation clusters may reside. Any reversal would need to reclaim the $63,000-$64,000 zone to signal that selling pressure is stabilizing.