Bitcoin fell below $63,000 late Monday before rebounding to around $63,220 early Tuesday, after touching an intraday low near $62,700.
The drop came as the broader crypto market slid, with total market capitalization reported at $2.25 trillion.
Sentiment turns to extreme fear
Presto Research associate researcher Min Jung said the move looked driven by worsening sentiment rather than a single catalyst.
Jung told The Block:
“Bitcoin’s move below $63,000 appears to reflect a broad deterioration in crypto sentiment rather than a single fundamental catalyst.”
Jung added that macro headlines, including tariffs and renewed geopolitical uncertainty, were reinforcing a risk-off tone.
Jung also argued crypto has recently underperformed relative to traditional risk assets.
Jung said:
“That divergence suggests this is not purely a macro-driven selloff, but also a function of weak marginal demand, thinner liquidity conditions, and continued deleveraging within crypto native markets.”
The crypto Fear and Greed Index stood at 5 at the time of writing.
ETF outflows extend
Analysts also pointed to continued selling pressure in U.S. spot crypto ETFs.
Spot bitcoin ETFs logged a fifth consecutive week of net outflows, the longest streak since March 2025.
On Monday, bitcoin ETFs saw $203 million in net outflows, while ether ETFs recorded $50 million withdrawn.
Key levels and capitulation debate
Bitrue Research Lead Andri Fauzan Adziima said the selloff still resembled a leverage flush rather than full capitulation.
Adziima said:
“We’ve seen massive long liquidations cascading through hundreds of millions wiped, negative funding rates sticking around, sharp drops in open interest, and clear bearish skew in futures.”
Adziima called $60,000 to $63,000 a critical support zone.
He warned a break below $60,000 could open downside toward the mid-$50,000s or even $47,000 in a worst-case scenario.
