Bitcoin's $60K Defense: Why Institutions Are Heading for the Exit

$60,000. That's the psychological floor Bitcoin barely managed to hold Thursday night as the world's largest cryptocurrency teetered on the edge of a deeper plunge. After soaring to over $126,000 in October, Bitcoin now trades at roughly half that peak, clinging to a recovery at $66,015 as of Friday morning.

But the bounce may be temporary. Market analysts are warning of more pain ahead, pointing to a troubling shift in the very foundation that once supported crypto's meteoric rise: institutional money is walking away.

The Great Institutional Exodus

The most striking change is happening in ETF flows. According to CryptoQuant, U.S. exchange-traded funds that were net buyers of 46,000 bitcoin this time last year have now turned into net sellers in 2026. This represents a fundamental reversal in institutional appetite.

"The average price people paid for bitcoin via an ETF is $90,000," Markus Thielen, head of research at 10X Research, told CNBC. "Those investors are materially in losses now." The selling pressure is concentrated during U.S. trading hours, suggesting American institutional investors are "throwing in the towel."

Adding fuel to the fire are forced liquidations—automatic sell orders triggered when Bitcoin hits predetermined price levels. Thursday alone saw over $2 billion worth of long and short positions liquidated, with an additional $800 million cleared on Friday. These mechanical sales create a vicious cycle, pushing prices lower and triggering more liquidations.

Tech Correlation and Market Chaos

Bitcoin's troubles aren't happening in isolation. The cryptocurrency has increasingly moved in tandem with U.S. tech stocks, and the recent tech sell-off has dragged crypto markets down with it. This correlation challenges the narrative of Bitcoin as a hedge against traditional financial markets.

More surprisingly, even traditional safe havens like gold and silver have shown extreme volatility, adding to overall market turmoil. When even precious metals can't provide stability, investors struggle to find refuge anywhere.

How Low Can It Go?

The technical picture looks grim. Bitcoin's drop below $70,000 has many analysts eyeing further downside. 10X Research estimates Bitcoin could fall as low as $50,000, though Thielen suggests there might be a brief counter-trend rally first.

"I think we are going to have a little counter-trend rally that might go sideways or bounce a little bit," Thielen said. "But I think during the summer we make another low."

Other major cryptocurrencies are faring even worse. Ethereum and XRP have fallen more than 60% from their record highs, while Solana is down over 70%. These steep declines suggest the entire crypto ecosystem is under pressure, not just Bitcoin.

The Institutional Reckoning

What makes this downturn different from previous crypto winters is the scale of institutional involvement. Unlike retail-driven crashes of the past, this sell-off features sophisticated investors with deep pockets cutting their losses. The ETF reversal is particularly significant because these funds were supposed to bring stability and legitimacy to crypto markets.

The forced liquidations reveal another structural issue: the heavy use of leverage in crypto trading. When prices fall, leveraged positions get wiped out automatically, creating selling pressure that has little to do with fundamental value assessments.