Bitcoin Falls Below $71,000 as Traders Face Heavy Selling Pressure

Bitcoin dropped to $70k level at the start of the week, reaching its lowest price in seven weeks as market uncertainty and geopolitical tensions triggered widespread selling across the crypto market.

Bitcoin Derivatives Traders Increase Bullish Bets

Despite the decline, large traders and institutional participants have continued building long positions in Bitcoin derivatives markets. Data from major exchanges showed an increase in long to short ratios among top traders, suggesting that some investors expect a price recovery after the recent correction.

At the same time, total Bitcoin futures open interest remained near $43.5 billion, indicating that traders largely maintained their positions despite significant market volatility.

Funding Rates Signal Growing Optimism

Bitcoin perpetual futures funding rates recently climbed to around 13% on an annualized basis, moving above neutral levels for the first time in several months. While this reflects stronger bullish sentiment, it also raises the risk of additional liquidations if prices continue to move lower.

Spot Market Weakness Continues

The latest sell-off resulted in approximately $276 million in long liquidations. Rising tensions involving the United States, Iran, and Israel contributed to broader risk aversion among investors.

Meanwhile, capital has continued flowing out of crypto markets. USDT traded at a slight discount to the US dollar, suggesting investors were moving funds into traditional currencies. Spot Bitcoin ETFs have also recorded net outflows of roughly $3.46 billion since mid-May, highlighting ongoing pressure in the spot market despite growing optimism among derivatives traders.