Bitcoin Recovers to $63K After $59K Plunge, ETF Outflows Hit $1.72B in Worst Week

Bitcoin (BTC) fell to $59,100 on Friday, its lowest level during the day since October 2024 and its worst week since the 2022 crypto winter. It rose as much as 3.8% to almost $64,200 in early trading on Monday before settling around $63,053.

This was a weak recovery after the drop. Since its high point above $126,000 in October, the main coin has lost about half of its value. Traders can breathe better. But Bitcoin is still in healing mode and not party mode.

After hearing that Strategy sold 32 BTC last week to pay dividends, Michael Saylor suggested over the weekend that more Bitcoin purchases might be coming. This helped calm people down.

The sale shook a market that was partly based on the idea that Strategy would keep buying forever. Plan shares went down by about 7% on Friday. As people lost interest in taking risks, Coinbase fell about 7% and Circle, a company that makes stablecoins, fell more than 11%.

What Drove the Selloff: $5.4B in Four Weeks of ETF Outflows

The sale was done by institutions. SoSoValue data shows that $1.72 billion left U.S. spot Bitcoin ETFs last week. This was the largest weekly loss since April 2025. For the fourth week in a row, money left spot ETFs, adding up to $5.4 billion. People were leaving crypto because they didn't want to take risks because of the Iran war and how it might affect interest rates.

Investors also switched their attention to stocks that are subject to AI as they became more optimistic about the sector over crypto. When the AI surge stopped on Friday and Monday, Bitcoin felt a little better. But the story about the cycle stays the same.

Hot job numbers added to the stress. U.S. nonfarm payrolls that were better than expected on Friday gave the Federal Reserve more room to raise or keep interest rates high. This is bad news for risky assets that don't earn any money. Ether went up 3.4% to $1,666.44, coming back from a loss of almost 20%. Both XRP and Solana went up 1.3%. Gains were hindered by people's unwillingness to take risks.

The Geopolitical Shadow: Israel-Iran Escalation

Monday's rise was short-lived after news came out that Israel had launched revenge strikes against Iran. Sunday night, Iran and Israel both fired missiles from the air.

This happened as anger in Tehran grew over Israel's continued attacks on Lebanon and Hezbollah. President Donald Trump had asked people to be calm and said that a peace deal with Iran was still possible, but the strikes happened anyway.

Increasing military action—the US and Iran have both launched strikes in the last week—has made peace less likely. The idea caused oil prices to rise, which scared markets in general. Crypto is still very sensitive to global risk.

The support level that held, just barely, at $60,000. Friday's midday low of $59,100 broke through it before it rose again. A long-term hold above $60K helps people regain their trust. If it breaks below, the next technical floors could be $55,000 or even $50,000.

Every week, $1.72 billion leaves ETFs, which shows that big investors are losing patience. The structural number that tests the "institutional adoption" story is $5.4 billion over four weeks. If people keep pulling their money out of Bitcoin, the passive bid that has been supporting price discovery since the ETF start will go away.

It peaked in October at $126,000 and has since dropped by half. The 50% drop is usually the difference between corrections in a bull market and the start of a bear market. Whether this is the first or second case relies on whether ETF flows change direction and Saylor's hints of purchases come true.

The trade clock is the tension between Iran and Israel rising. Keep an eye on whether Trump's call to be calm holds or if military strikes expand to once again threaten ships in the Strait of Hormuz. The Fed's rate plan is the big picture. Rate hikes are once again possible because of good job numbers, which is bad for Bitcoin.

The fight is over the $60,000 queue. Hold it, and the story about halving stays living. If you lose it, sellers will push you harder.