Bitcoin Price Plummets After Unrealized Gains Near $73K All-Time High

  • Bitcoin experienced a significant downturn on Friday after a week of hitting and testing the $72,000 mark.
  • This decline raised questions as the influx into US-based ETFs continued.
  • A notable detail shared by analyst Willy Woo suggests that excessive leverage might be a contributing factor.

Explore the reason behind Bitcoin’s sudden drop despite continuous inflows into US-based ETFs and the potential implications for over-leveraged traders.

The Influence of Bitcoin ETFs

The introduction of Bitcoin exchange-traded funds (ETFs) approved by the US Securities and Exchange Commission earlier this year stands out as one of the most critical developments in the cryptocurrency market. Traditionally, the Bitcoin halving event captured significant attention every four years, but in 2024, the spotlight shifted towards Bitcoin ETFs. These financial instruments, backed by major institutions like BlackRock and Fidelity, introduced a novel way for retail and institutional investors to gain exposure to Bitcoin without the complexities of managing private keys and digital wallets.

This landmark development had an immediate effect, propelling Bitcoin’s price upwards by over 50% within weeks and reaching a new all-time high of $73,800 shortly after the ETFs were launched. This achievement was particularly notable as it marked the first instance of Bitcoin setting a record high before a halving event.

The subsequent price trajectory of Bitcoin remained closely tied to the flow of funds in and out of these ETFs. There were significant price declines in mid-April and early May, mirroring the outflows from these financial products. However, the trend reversed when inflows resumed in mid-May, and the ETFs have seen steady inflows for 19 consecutive days as of June.

Despite this positive streak, Bitcoin experienced a sharp decline on Friday, plummeting from $72,000 to $68,500 within minutes.

Analyzing the Drop

With ETF flows seemingly not to blame for this recent drop, the community has turned to other explanations. Prominent analyst Willy Woo suggested that excessive leverage within the market could be a critical factor. He noted that Bitcoin’s price would continue to face volatility as long as there were high-leverage players who could be easily squeezed by larger market movements.

#Bitcoin won’t get nice things until the last minute degen longs give up chasing the price.

If you wanna go long, set your liquidation safely away from being squeezed by the whales.

— Willy Woo (@woonomic) June 7, 2024

Another prevailing theory among crypto enthusiasts is that the sharp proximity to the all-time high of $73,800 prompted many investors to take profits. Being so close to this historical peak provided an ideal exit point for traders to realize gains, leading to substantial sell-offs and contributing to the rapid price drop.

Regardless of the underlying reason, the massive sell-off resulted in over $400 million worth of liquidations within a single day. This serves as a stark reminder to traders about the perils of high leverage, emphasizing the need for cautious strategies in a highly volatile market.


The sharp decline in Bitcoin’s price on Friday underscores the complexity and volatility of the cryptocurrency market. While the continuous inflows into Bitcoin ETFs signal robust institutional interest, factors like market leverage and profit-taking behaviors can quickly lead to significant price swings. Traders must navigate these dynamics carefully, recognizing the inherent risks associated with leverage and the potential for rapid market corrections.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

Latest News


PRO Analysis

Ethereum Price Analysis: Regulatory Delays and Market Sentiment Intensify Decline

The recent volatility in Bitcoin’s price has...

Discover the Future of Decentralized Trading: In-Depth Analysis of GNS Coin on Gains Network

Gains Network (GNS) is a decentralized trading...

Dogecoin Price Analysis: Potential Trend Reversal and Future Projections

Dogecoin's value has experienced a substantial decline...

BONK Price Analysis: Bullish Reversal Imminent as Key Support Level Holds

Amid fluctuating market conditions, BONK is displaying...
Gideon Wolf
Gideon Wolf
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.

Coinbase Halts Trading for Enjin Coin (ENJ), Ensuring Fund Withdrawals Remain Open

Coinbase, one of the leading cryptocurrency exchanges, has revealed the cessation of trading for Metal DAO (MTL) and Enjin Coin (ENJ) on...

Retik Finance (RETIK) Emerges as Dominant Solana Competitor with 500% Growth Potential and Major Exchange Listings

Retik Finance (RETIK), a rising star on the blockchain, is gaining attention for its impressive trajectory in the decentralized finance (DeFi) space. ...

Solana Price Hits Major Support Level at $141: Potential Rebound Ahead

Solana has been on a downward trajectory for the last month, with its price recently hitting $141.3, a low for...