Bitcoin Tests $59K as ETFs Shed $692M, Options Expiry Looms

Bitcoin fell to around $59,400 as spot ETFs saw $691 million in outflows, the most since May, ahead of a $10.6 billion options expiry on Friday.

The leading cryptocurrency by market cap tested the $59,000 level after a sharp sell-off, with $691 million fleeing spot Bitcoin ETFs in the largest single-day outflow since May. The selling pressure comes as traders position ahead of Friday's $10.6 billion monthly options expiry on Deribit, which often amplifies volatility. The outflows suggest institutional investors are reducing exposure, adding to the bearish sentiment in the market.

For crypto traders, the ETF outflow data is a key sentiment indicator, as these products have been a major driver of Bitcoin's price action this year. The correlation between ETF flows and Bitcoin price has been well-documented, with sustained outflows often preceding further downside. Additionally, the large options expiry could lead to increased volatility and potential price swings as market makers hedge their positions. Traders can check NowPrice's crypto page for real-time pricing and flow data.

Looking ahead, the market will focus on whether ETF outflows continue and how the options expiry resolves. Key support at $58,000 could be tested if selling persists, while a recovery above $60,000 would signal renewed buying interest. Macro factors, including US Treasury yields and the dollar index, also remain in focus as they influence risk appetite across asset classes.