Bitcoin traded near $77,733 during midday Hong Kong hours, stabilizing after a volatile session that briefly pushed prices down to $76,685 and failed to hold gains above $78,000 during U.S. trading, according to CoinDesk data.
The move came during a liquidation-heavy period across crypto markets, though derivatives indicators suggest the selloff was driven more by the unwinding of leverage than by a deeper deterioration in market structure.
Open interest, which tracks outstanding leveraged futures positions, remained broadly stable throughout the decline. Funding rates also stayed muted or turned negative, signaling that traders were not overly bullish or heavily long-positioned ahead of the drop. HashKey Group senior researcher Tim Sun said this reflects cautious positioning rather than aggressive speculation building up before the move.
According to Sun, the lack of excessive leveraged long exposure indicates that liquidations were concentrated among short-term traders attempting to catch the bottom, rather than a broad-based capitulation. He added that the price action does not point to a structural downtrend, with support clearly forming in the $75,000–$77,000 range.
Still, macroeconomic pressures remain the dominant influence on markets. Rising long-term yields, persistent inflation concerns, and elevated oil prices are keeping investors risk-averse, with limited fresh capital flowing into speculative assets.
Data from CoinGlass showed roughly $200 million in crypto liquidations over the past 24 hours, split nearly evenly between long and short positions—highlighting a two-sided flush rather than a one-directional selloff.
Sun pointed to the U.S. 30-year Treasury yield rising above 5% as a key pressure factor, noting that higher yields increase the opportunity cost of holding non-yielding assets like bitcoin while tightening broader financial conditions.
Looking ahead, he said geopolitical developments could play a decisive role. Any easing of U.S.-Iran tensions could help cool oil prices and inflation expectations, potentially easing pressure on yields and supporting a recovery in bitcoin.
Until then, bitcoin is likely to remain range-bound, with the $75,000–$77,000 area acting as a key short-term support zone.
