Bitcoin Price Falls To $63k As Riot Platforms Sells BTC To Fund AI

Bitcoin Price Falls to $63k as Riot Platforms Sells BTC to Fund AI

Bitcoin (BTC) price is down 0.61% to $63k, underperforming a flat broader market, primarily driven by a cascade of leveraged long liquidations and news that cryptocurrency mining platforms timed their holdings.

Reflecting weak sentiment, BTC dipped amid a derivatives-driven long squeeze, with over $1 billion in liquidations since Monday forcing leveraged positions to unwind.

A buildup of leveraged long positions, particularly on Binance, where open interest rose to $8.15 billion, met with downside volatility. This triggered a cascade, with over $262 million in total crypto liquidations in 24h and bitcoin-specific longs accounting for $34 million.

The simultaneous drop in price and open interest signals longs were forcibly exited. The market is flushing out over-leveraged optimism, creating a cleaner, albeit weaker, price structure. A stabilisation in open interest and funding rates would signal the squeeze is over.

U.S. spot Bitcoin ETFs saw $192 million in back-to-back outflows, their first consecutive drawdown since late July. This removed a key source of institutional demand and confirmed bearish sentiment, with the Fear & Greed Index at 36.