#BitcoinETFSees7272BTCOutflow

The possibility of a $2.6 billion squeeze in Bitcoin has increased! How could the market balance shift?

A risk of a $2.6 billion squeeze has emerged for short positions accumulated in Bitcoin between $63,000 and $66,000.

While $335 million worth of long positions were wiped out during Friday's drop to $61,100, an additional downside liquidation estimate of $1.2 billion is calculated at $57,000.

The negative funding rate indicates that bullish leverage in $BTC has largely been cleared, reducing downside risk.

Selling in technology stocks and anticipated IPOs are tightening liquidity, while potential ETF inflows could shift the balance again.

The Bitcoin price drop to $61,100 on Friday led to a $335 million liquidation in leveraged long positions. However, following the recent decline, the market structure suggests that downside pressure may be limited this time. According to the data, short positions accumulated between $63,000 and $66,000 have raised the risk of a squeeze of approximately $2.6 billion should the price recover.

Accumulation of short positions stands out

According to estimated liquidation data from major exchanges, if Bitcoin falls from $62,000 to $57,000, an additional liquidation of approximately $1.2 billion may occur. Conversely, if the price rises to $66,000, the size of short positions at risk reaches $2.6 billion. This scenario suggests that the recently weakened buyer appetite could regain strength with a sudden recovery.

The consecutive net outflows from spot Bitcoin ETFs also stood out as a significant factor in the market pressure. Spot Bitcoin ETFs traded in the US experienced significant fund losses during a 13-day series of outflows. The limited net inflow of $3 million recorded on Thursday was considered a temporary respite after a 15-day sell-off.

Market data suggests that a potential move towards $66,000 could put pressure on $2.6 billion in short positions, while a drop to $57,000 would leave the estimated liquidation amount at $1.2 billion.
Negative Funding Rate Attracts Attention

The decline in the annualized funding rate for Bitcoin perpetual futures to minus 2 percent was also among the indicators closely watched by the market. While the generally neutral range is between 6 and 12 percent, the current negative rate reveals that short positions have become more dominant. This also suggests that investors expecting a rise have significantly reduced their leverage, weakening downward vulnerability.

However, analysts note that in a scenario where investors holding short positions keep their leverage levels low, the impact of a potential squeeze may be limited. Therefore, not only the size of open positions but also how aggressively these positions are opened will be decisive.

Technology Stocks and Liquidity Pressure

While Bitcoin has recently been significantly weaker compared to the Nasdaq 100 index, sell-offs in the technology sector have also affected risk appetite. Broadcom stock fell 12.6 percent on Thursday, wiping $280 billion from the company's market value. The company's downward revision of its AI chip sales forecast for the second half of 2026 has led investors to become more cautious.

Similar pressure was seen in other major AI-related stocks. Micron fell 7.8%, and Arm dropped 4.5%. It is speculated that investors may be increasing their cash reserves ahead of expected IPOs of companies like SpaceX, Anthropic, and OpenAI, drawing liquidity from various markets, including crypto assets.
Jeff Park argued that the AI ​​theme has created a significant influx of capital into the market. According to Park, if this interest weakens over time, capital could return to Bitcoin. On the other hand, if spot Bitcoin ETF inflows accelerate again, or if concerns surrounding the 32 BTC sell-off in Strategy shares ease, the current concentration of short positions could make price movements more volatile.
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