Bitcoin dropped to its lowest level since September 2024 this week, falling 9% in just three days. The slide past $58,000 triggered over $1 billion in liquidations of leveraged long positions.
So what’s driving the sell-off? A few things are lining up at once. Spot Bitcoin ETFs saw massive outflows of $469 million in a single day — a clear sign institutional demand is fading. Meanwhile, the S&P 500 and gold have recovered their losses, making non-yielding assets like Bitcoin less attractive.
The tech sector is a big part of the story. Micron jumped 16% after strong earnings, Sandisk gained 18%, and Applied Materials rose 10%. Investors are rotating into chip stocks, partly buoyed by the administration’s push for domestic semiconductor production and a new framework for AI model releases.
There’s also a big options expiry coming Friday — $13 billion worth — and it’s heavily skewed toward puts. About 78% of call options are priced at $72,000 or above, meaning most bullish bets will likely expire worthless.
Strategy (formerly MicroStrategy) isn’t helping sentiment either. The company is sitting on huge unrealized losses after buying $64.1 billion in Bitcoin since 2020. Its preferred stock recently dipped below par value.
Still, Bitcoin managed a modest bounce back to around $59,500. Whether that holds depends on the $13 billion options expiry and ongoing ETF flows turn the tide — or push BTC lower.
