“Bitcoin is dead” searches spike as $70M in BTC liquidations hit amid ETF outflows
Google Trends recorded a spike in searches for “Bitcoin is dead,” reaching post-FTX highs as Bitcoin traded near the upper end of its cycle range. The surge in negative sentiment circulated widely among traders and social channels even while BTC hovered near key support levels. On-chain data showed a whale moved 11,318 BTC to Binance—about 60% of its holdings—and later converted out USDT via multiple addresses while leaving some BTC on the exchange. Derivatives data (Coinglass) reported over $70 million in Bitcoin liquidations in the prior 24 hours, pointing to pressure from leveraged positions rather than broad spot selling. BTC traded around $68,175 at the time, down about 2% on the week. Open interest rose from ~$19.54B to ~$20.71B with funding rates turning positive, and spot Bitcoin ETFs logged five straight weeks of net outflows. Technical support clusters identified near $67,300, $66,500, $65,300 and a deeper level near $60,800, suggesting tight downside buffer beneath current prices. Key takeaways for traders: elevated leverage and whale flows increase short-term volatility risk; continued ETF outflows indicate weak institutional demand; monitor support bands and funding/open-interest trends for potential squeeze or deeper correction signals.
Bearish
The article signals a bearish short-term outlook. Key factors: over $70M in recent BTC liquidations indicates concentrated leveraged long exposure and increased risk of cascade moves; a whale moving 11,318 BTC to Binance and converting out stablecoins can raise exchange inventory and potential sell pressure; five consecutive weeks of net outflows from spot BTC ETFs show weak institutional demand during the rebound. Although BTC remained near support and funding rates turned positive (which can fuel short squeezes), rising open interest alongside positive funding suggests crowded long positions vulnerable to liquidation. Historically, similar conditions—heavy leverage, large exchange inflows, and ETF outflows—have preceded sharp downside moves (examples: pre-2019/2020 margin squeezes and during FTX-era volatility). Traders should expect elevated short-term volatility and higher downside risk until ETF flows stabilize, whale behavior calms, and open interest/funding normalize. For trading: tighten risk controls, consider reducing leveraged long exposure, use tighter stop-losses around identified supports ($67.3k, $66.5k, $65.3k) and watch for a liquidity-driven drop toward $60.8k if support breaks. Longer-term impact depends on whether institutional ETF demand returns; persistent outflows would be structurally negative, while a resumption of inflows could quickly flip dynamics bullish via reduced supply and funding normalization.