This has been one of the roughest weeks since the FTX collapse in November 2022.

From Monday to Friday, Bitcoin plummeted from above $73,000 down to around $60,000, with hardly any decent bounces in between. The futures market saw around $7 billion in liquidations, of which $5.7 billion was from long positions.

Late Friday night, Bitcoin briefly dipped below $60,000 but quickly rebounded. Today, the market showed signs of a corrective bounce, with Bitcoin and Ethereum both up a bit over 2%.

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Why did it drop so hard?

First off, Strategy started selling Bitcoin.

This week, Strategy sold 32 Bitcoins, totaling about $2.5 million, marking the first time in nearly four years. Although the amount isn't huge, the market interpreted it as "the last bit of faith starting to waver."

Second, ETF outflows continue.

K33 Research points out that funds are rotating—from the crypto market to AI stocks. AI-related stocks are hitting new highs, with major players like SpaceX, OpenAI, and Anthropic gearing up for IPOs, making the opportunity cost of holding Bitcoin increasingly high.

Third, Zcash security vulnerabilities are intensifying panic.

AI has discovered a critical vulnerability in Zcash that has been around for four years, causing concerns about the security of privacy coins and the entire on-chain protocol.

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Have we hit the bottom?

The market bounced back today, but it's still too early to determine if we've hit the bottom.

Positive signal: $60,000 held strong; after briefly breaking below last night, it quickly rebounded, indicating solid buy support below.

Negative signal: ETFs are still flowing out, smart money hasn't started bottom fishing yet, and the technical indicators are still in a bearish alignment.

The market may need more time to consolidate and find the bottom. A true bottom isn't formed in a day; it usually requires multiple tests at a certain level to confirm.