🚨 WHY BITCOIN IS DUMPING BELOW $70,000 — THE REAL BREAKDOWN
1) Bitcoin no longer trades like a scarce on-chain asset
The old Bitcoin thesis — 21 million cap + scarcity = price discovery — is eroding. Today, derivatives dominate price: perpetual swaps, futures, options and ETF products now dwarf spot trading volume. That means synthetic exposure and leveraged positioning are driving prices more than real coins changing hands. Price discovery has shifted off-chain. �
Blockonomi +1
2) Synthetic “paper BTC” weakens scarcity logic
In traditional markets (e.g., gold and oil), derivatives create effectively unlimited financial exposure without real supply changes. In Bitcoin’s case, the same on-chain 21 M coins can back multiple derivatives, creating a much larger synthetic float vs physical scarcity. That compresses the impact of real supply constraints. �
MEXC
3) Forced liquidations and leverage unwinding amplify dumps
Recent price swings were not mostly organic spot sell-orders — they were derivatives flows unwinding. Large reductions in open interest triggered forced liquidations, which cascaded into further selling pressure. This mechanism can make dips sharper and deeper than justified by on-chain fundamentals. �
AInvest
4) ETF outflows & institutional sentiment matter more now
Bitcoin has become an institutional asset, not just a retail or hodler market. When U.S. spot Bitcoin ETFs see net outflows, funds sell BTC on the spot market to meet redemptions — adding real selling pressure. �
Moneycontrol
5) Macro headwinds — risk assets sold together
Broader markets are weak. A strong U.S. dollar, hawkish central bank expectations, and rising yields make risky assets like Bitcoin less attractive. These macro pressures hit Bitcoin hard because many holders treat it like a risk bet, not a safe store of value. �
Moneycontrol
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