Bitcoin rebounds above $60,000 after $1.6 billion liquidation-driven selloff By Investing.com

This is less a crypto-specific drawdown than a cross-asset deleveraging event caused by a regime shift in rates. When front-end yield expectations reprice higher, the first casualties are assets whose valuation depends on abundant liquidity and persistent ETF/retail marginal demand; that makes high-beta crypto, semis, and crypto-linked equities vulnerable in the same tape. The liquidation cascade matters because it creates path dependence: once levered longs are flushed, spot can overshoot fair value for 1-2 sessions even if the macro shock is temporary.

The key second-order effect is that spot ETF outflows remove the natural buyer that had been dampening volatility this year. That means dips are no longer being absorbed by passive demand, so any further downside is more likely to be mechanical rather than fundamental — especially if funding remains elevated and options dealers are still short gamma below round numbers. In that setup, the market can stay fragile for days, but the longer-term damage depends on whether BTC holds the mid-50s support zone; a decisive break would likely force systematic de-risking across the whole digital-asset complex.

Contrarianly, the selloff may be overextended if the jobs data only delays cuts rather than eliminates them. A higher-yield, stronger-dollar regime is bearish for speculative assets, but it also improves the odds that any further weakness in crypto is bought by longer-horizon allocators hunting convexity after leverage is cleared. The most asymmetric setup is not chasing the dip immediately; it is waiting for either stabilization in yields or a failed breakdown below support, because the first rebound after forced liquidation is typically fast but tradable only if downside pressure has already exhausted itself.