The crypto market has been rocked by a violent correction and an equally dramatic bounce, with institutional buying providing the spark. After Bitcoin dropped nearly 20% in under a week—triggering over $2 billion in long liquidations and erasing more than $100 billion from the total market—long-term holders held firm, refusing to panic. The sell-off was largely driven by a repricing of rate-cut expectations after a stronger-than-expected U.S. jobs report signaled the Federal Reserve might hold rates higher for longer. Bitcoin briefly broke below the $60,000 support zone, but the subsequent recovery proved swift and punishing for bears.
BlackRock halted its Bitcoin ETF outflows at a critical moment. The asset management giant posted a net inflow of 537 BTC, worth approximately $33.18 million. The move arrived just as the market was pricing in a potential rate hike by year-end, adding weight to the idea that institutional players view the dip as an accumulation opportunity. Historically, shifts in BlackRock’s ETF flows have clustered around key Bitcoin price inflection points, and this purchase may be an early signal of stabilization.
The bounce ignited a massive short squeeze. Over the 24 hours following BlackRock's purchase, Bitcoin rallied to a high of $63,700—well above last week’s floor. Short sellers who had piled in near the lows were crushed. Liquidations of bearish bets hit $504 million in a single day, the most since late April, according to CoinGlass. Total crypto liquidations exceeded $655 million, impacting over 104,000 traders. Bitcoin futures accounted for $315 million of those forced closures, and Ether positions added another $201 million. The single largest liquidation was a $12.3 million Bitcoin futures trade on OKX.
The rebound lost some steam on Monday as geopolitical tensions flared—renewed strikes between Iran and Israel pushed oil prices higher and sent Asian stocks tumbling—but Bitcoin remained well supported around $62,900. Volatility is expected to stay elevated ahead of U.S. inflation data and a wave of major IPOs. With institutional flows turning positive and long-term holders showing conviction, the market may be entering a new phase of cautious recovery.
