Bitcoin News

Story: Bitcoin Drops 8% as Leverage Clears, Volatility Looms

By Julie Binoche

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Market Dynamics Behind the Correction. The correction coincided with a notable development in the broader macroeconomic landscape.

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Indicators Pointing to Potential Volatility. The report also underscored that realized gains have accelerated recently.

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Derivatives Market and Leverage Impact. The derivatives market painted an even more detailed picture of the correction’s underlying…

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Short-Term Outlook: Turbulence Ahead. Despite the leverage cleanup, on-chain data suggests Bitcoin may face turbulence in the near term.

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Conclusion. Bitcoin’s recent pullback serves as a healthy correction after a strong rally, eliminating…

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Bitcoin (BTC) recently experienced an 8% pullback from its May 22 all-time high near $112,000, marking the end of an impressive 50% rally that began on April 7 when the…

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The correction coincided with a notable development in the broader macroeconomic landscape. On June 2, the “Bitfinex Alpha” report highlighted that a U.S.

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Institutional flows provide a clearer picture of market sentiment during this period. Spot Bitcoin exchange-traded funds (ETFs) witnessed substantial inflows, with investors…

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Yet, this bullish narrative encountered a hiccup towards the end of May. BlackRock’s iShares Bitcoin Trust (IBIT) reported its largest-ever daily outflow of nearly $431 million…

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The report also underscored that realized gains have accelerated recently. Bitcoin’s Relative Unrealised Profit (RUP) indicator exceeded its two-standard-deviation upper band—a…

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High profitability tends to increase selling pressure, requiring spot demand to absorb redistributed coins to sustain an upward price trend.

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Options open interest had reached $49.4 billion before the May 29 expiry trimmed it to about $39 billion.

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The report concluded that the recent correction was necessary to remove excess leverage, realign supply and demand, and reset futures and options funding rates.

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Despite the leverage cleanup, on-chain data suggests Bitcoin may face turbulence in the near term. The cryptocurrency is currently trading just 6.

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As of June 3, 2025, at 2:50 am UTC, Bitcoin’s price stands at approximately $106,288, marking a modest 0.82% gain over the past 24 hours. The market capitalization is $2.

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