Bitcoin Rebounds From 21-Month Low, But Leverage Data Points To Caution

Bitcoin climbed as high as $61,049 today, gaining about 3.1% in 24 hours after slipping to a 21-month low of $57,737 earlier in the session.

Ether and Solana also rose, up 4% and nearly 5%. Despite the bounce, Bitcoin remains down roughly a third since the start of the year, with market sentiment reading around 20 out of 100, deep in “Fear” territory.

ETF Outflows Contrast With Long-Term Holder Buying

US spot Bitcoin ETFs saw $4.5 billion in net outflows in June, the largest monthly outflow since launch. Yet onchain data shows long-term holders added about 270,000 BTC over the past two weeks, suggesting some larger investors view the drop as a buying opportunity rather than a warning sign.

Funding Rates Show Crowded Bullish Bets

The funding rate has stayed positive for three straight days, meaning traders betting on higher prices remain heavily positioned even as Bitcoin hit new lows. This buildup raises the risk of forced liquidations if prices move further against them.

Leveraged positions are concentrated mainly between $57,000 and $60,500, matching Bitcoin’s recent trading range. A move above $61,000 or below $56,000 could trigger faster liquidations. For now, analysts describe the near-term outlook as neutral.