Bitcoin is edging closer to the $60,000 support level, a break below which could trigger accelerated selling. Deribit Chief Commercial Officer Jean-David Péquignot underscored that $60,000 is not just a psychological round number but a structural threshold with tangible implications for institutional investors and derivatives markets. Over the past year, a significant amount of institutional capital—including ETF buyers, whales, and short-term speculators—entered the market between $60,000 and $67,000, making this zone a crucial battleground.
Institutional Cost Basis Under Pressure
As BTC drifts back toward this buy-in zone, many investors are sitting near breakeven. A dip below their average cost would immediately widen paper losses. Moreover, with traditional markets such as AI stocks rallying, the opportunity cost of holding Bitcoin rises, potentially prompting investors to sell and redeploy capital. Many large institutions and whales built positions throughout this range, and mounting losses could cascade into forced exits.
Derivatives Market Adds Selling Pressure
Deribit data reveals roughly $1.2 billion notional in $60,000 put options remains open. Market makers hedging these positions may be forced to offload spot or futures as the underlying declines, creating a negative feedback loop that accelerates the drop. At the same time, a substantial amount of leveraged long positions in perpetual swaps lingers in the system. A breach of $60K could trigger a cascade of liquidations, unleashing a wave of forced selling and magnifying the turmoil.
Péquignot noted that billions of dollars in leveraged long liquidations have already occurred this week. Should the $60,000 level crumble, the sell-off could become rapid and disorderly.