The market has clearly shifted, against broader expectations.
If that reverses, liquidity will obviously be drained as over-indebted positions become stuck on the wrong side of the move.
In this setup, with Bitcoin down nearly 20% in less than a week, the bulls are clearly the victims, with more than $2 billion in long liquidations in just five days, triggering broad market deleveraging.
That said, one key signal suggests that this Bitcoin correction could be more than just a default reset. The main driver here is the repricing of interest rate cut expectations.
And given the sharp shift in risk in US equities, we can clearly see that the market had priced in heavy rate cuts this year.
The core motivation? Positioning around a weaker labor market that would force the Fed to ease.
However, the latest jobs data came in stronger than expected, pointing to a more resilient US labor market than the consensus priced in.
The result was a sharp repricing of risks across assets, wiping out more than $100 billion from crypto and pushing Bitcoin below the key $60,000 support zone, highlighting how quickly positioning is unwinding due to the macro shift.
Naturally, this shifts the focus to the long-term cohort of Bitcoin holders. So far, short-term holders (STHs) continue to suffer losses through 2026, while conviction among LTHs holds.
As AMBCrypto reported, LTH Bitcoin supply losses recently rose above 5 million, but selling pressure has remained relatively contained.
In this context, the recent BlackRock action stands out.
Repricing interest rate hikes puts Bitcoin to the test, but institutions are leaning in
After the strong jobs report, the market is now fully pricing in a rate hike by the end of the year.
This obviously puts pressure on the long-term structure of crypto. Therefore recently outflow of over $100 billion suggests this move goes beyond a simple short-term flush as investors continue to reposition themselves.
Against this backdrop, institutional flows carry more weight, especially as concerns about Bitcoin’s longer-term trajectory grow. This is specifically where BlackRock’s recent activities come into the picture.
As the chart shows, BlackRock has finally halted BTC outflows, with a net inflow of 537 BTC ($33.18 million).
It’s no surprise that the timing of this move led to a broader market frenzy.
Historically, shifts in BlackRock’s inflows and outflows have often centered around key turning points in Bitcoin’s price action, making this a potentially early signal of stabilization following the recent price decline.
And combined with the recent interest rate hike story, this purchase starts to take on even more weight. This could mark the beginning of a broader Bitcoin [BTC] accumulation phase.
Final summary
- Bitcoin falls as expectations of rate cuts fade and long debt positions are wiped out.
- If BlackRock turns net positive on Bitcoin flows, it could indicate accumulation is starting again.