Bitcoin Tests 63000 As Extreme Fear Grips Crypto Markets And ETF Outflows

TLDR

Table of Contents

Bitcoin fell to $62,700 as the Fear and Greed Index dropped to 5.
Spot Bitcoin ETFs recorded $203 million in daily net outflows Monday.
Analysts say long liquidations rise but long term holders are not selling heavily.
$60,000 to $63,000 seen as key support zone for near term price action.

Bitcoin tested $63,000 as extreme fear spread across crypto markets, yet analysts said full capitulation has not arrived. The decline came as ETF outflows continued and leverage unwound.

Bitcoin dropped to a low of $62,700 late Monday before recovering to around $63,220 early Tuesday. The asset lost more than 3% in 24 hours. The broader crypto market also moved lower, and total market value fell to $2.25 trillion.

Market Slides Amid Extreme Fear

Major altcoins followed Bitcoin’s decline. Ether fell 2.5% to $1,828, while XRP traded near $1.33. Solana slipped 2.3% to $76.8. The overall market posted a 3.42% daily drop.

The Crypto Fear and Greed Index stood at 5. This level marks one of the lowest readings in recent years. The reading reflects strong risk aversion among traders.

Min Jung, associate researcher at Presto Research, said the move below $63,000 reflects weaker sentiment. “Bitcoin’s move below $63,000 appears to reflect a broad deterioration in crypto sentiment rather than a single fundamental catalyst,” Jung said.

She added that macro headlines added pressure. Tariff concerns and geopolitical tensions contributed to a risk off tone. At the same time, crypto underperformed some traditional risk assets.

ETF Outflows and Liquidity Pressure

Spot Bitcoin exchange traded funds posted their fifth straight week of net outflows. This marks the longest streak since March 2025. On Monday alone, Bitcoin ETFs recorded $203 million in net outflows.

Ether ETFs also saw withdrawals. Data showed $50 million in net outflows for the day. These persistent redemptions added to downward pressure on prices.

Jung noted that the divergence from traditional markets suggests internal weakness. She said thin liquidity and weak marginal demand played a role. Continued deleveraging in crypto native markets also weighed on prices.

Open interest in futures markets declined as traders reduced exposure. Funding rates remained negative across major exchanges. This setup reflected bearish positioning and lower risk appetite.

Deleveraging but Not Full Capitulation

Despite sharp price swings, some analysts said the market has not reached full capitulation. Andri Fauzan Adziima, Research Lead at Bitrue, pointed to heavy long liquidations. He said hundreds of millions were wiped out during the recent drop.

“We’ve seen massive long liquidations cascading through hundreds of millions wiped,” Adziima said. He added that negative funding rates and falling open interest show leverage flush out.

However, he noted that long term holders have not sold in large numbers. On chain data shows some accumulation during the decline. Short term holders faced most of the pressure.

This pattern suggests a leverage driven correction rather than a broad exit. Analysts said such phases often occur before markets find temporary stability.

Key Support Between $60000 and 63000

Adziima identified the $60,000 to $63,000 range as a critical support zone. If Bitcoin holds this area, negative funding rates could pressure short sellers. That could create conditions for a short squeeze.

He said a return of ETF inflows or calmer macro data could support a rebound. Market participants are watching flows and sentiment closely.

A break below $60,000 may open the path toward the mid $50,000 range. In a severe scenario, price could test $47,000. That move could trigger further liquidations.