Bitcoin Short Positions Face $2.6 Billion Liquidation Squeeze After Friday's Decline to $61,100

Bitcoin short positions accumulated between $63,000 and $66,000 face a potential $2.6 billion liquidation squeeze following Friday's sharp decline to $61,100. The sell-off wiped out approximately $335 million in leveraged long positions, with bitcoin down 21% from recent levels. If the price rebounds toward $66,000, forced short covering could exceed $2.6 billion in liquidations—more than twice the downside risk to long positions.

Perpetual futures funding has turned negative at approximately minus 2% annualized, indicating bearish traders now hold the more crowded position after long leverage was largely cleared. Concurrently, U.S. spot bitcoin ETFs recorded a 13-day streak of net outflows, draining approximately $5.1 billion before a $3 million inflow on Thursday offered limited relief. Broader risk appetite weakness from technology stocks, including Broadcom's 12.6% drop on AI forecast cuts, has also contributed to reduced speculative capital flowing into crypto markets. The current setup leaves bears vulnerable if spot demand stabilizes before they reduce leverage.