Bitcoin traded around $77,733 during midday Hong Kong hours, holding steady over the past day after briefly dropping to $76,685 and failing to sustain levels above $78,000 in U.S. trading, according to CoinDesk data.
The move came amid a liquidation-driven session across crypto markets, though derivatives data suggests the pullback was largely the result of leverage being unwound rather than a broader shift in market structure.
Open interest, which reflects outstanding leveraged futures positions, remained relatively stable through the selloff. Funding rates also stayed low or flipped negative, indicating traders were not aggressively positioned long ahead of the downturn. HashKey Group senior researcher Tim Sun said this points to cautious positioning rather than excessive bullish leverage building up beforehand.
Sun added that the absence of heavy leveraged long exposure suggests the liquidations were concentrated among short-term traders attempting to catch a bottom, rather than a widespread market capitulation. He also noted that the current move does not signal a structural downtrend, with a well-defined support zone forming between $75,000 and $77,000.
However, he emphasized that macroeconomic conditions remain the key pressure point for risk assets. Rising long-term bond yields, ongoing inflation concerns, and elevated oil prices continue to weigh on investor sentiment, with limited fresh capital entering speculative markets.
CoinGlass data showed around $200 million in crypto liquidations over the past 24 hours, split almost evenly between long and short positions—suggesting a volatile shakeout on both sides rather than a one-directional crash.
Sun highlighted the U.S. 30-year Treasury yield climbing above 5% as a critical factor, noting that higher yields raise the opportunity cost of holding non-yielding assets like bitcoin while tightening overall financial conditions.
Looking ahead, he said geopolitical developments could become a key catalyst. A de-escalation in U.S.-Iran tensions could help ease oil prices and inflation expectations, potentially relieving pressure on yields and supporting a rebound in bitcoin.
Until then, if macro conditions remain tight, bitcoin is likely to stay range-bound, with the $75,000–$77,000 region acting as a key short-term support zone.
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