Bitcoin Rebounds to $59.5K After Three-Day 9% Drop

Bitcoin fell about 9% over three days to a low near $58,000 before recovering to roughly $59,500. The pullback forced more than $1 billion in long liquidations and coincided with $469 million in net outflows from U.S.-listed spot Bitcoin ETFs and a $13 billion options expiry with a heavy put skew.

The sell-off accelerated after the U.S. Personal Consumption Expenditures index for May showed a 4.1% year-over-year increase. Brent crude oil has moved from about $95 to $75 over the past month, a decline that freed cash for other assets and helped lift equity markets.

Technology stocks delivered strong moves during the period. Micron Technology shares rose about 16% after quarterly results, Sandisk gained about 18%, and Applied Materials climbed roughly 10% following announcements about new chipmaking tools. The U.S. government disclosed a 9.9% stake in Intel, proposed $2 billion for quantum computing firms, opened federal land for data center projects and issued a framework for releases of advanced AI models.

Fixed income also attracted funds. Five-year U.S. Treasury yields are near 4.15%, and the CME FedWatch Tool shows about an 80% probability of a U.S. interest rate increase by December, up from roughly 68% a month earlier.

Institutional flows into spot Bitcoin ETFs weakened during the downturn. U.S.-listed spot Bitcoin ETFs recorded $469 million in net outflows on Wednesday. Ahead of Friday’s options expiry, Deribit open interest indicated put options exceed calls by about $3.4 billion, and roughly 78% of call open interest is struck at $72,000 or higher.

MicroStrategy (MSTR), a large corporate Bitcoin holder, holds an extensive Bitcoin position and is showing a sizeable unrealized loss after accumulating Bitcoin since 2020.

Equity and gold markets erased intraday losses as Bitcoin attempted to stabilize. Market participants are watching ETF flows, options open interest and corporate positions for signs of renewed demand.

Spot ETF flows track cash going into or out of regulated Bitcoin investment products and serve as a proxy for institutional interest. Options open interest shows where large option bets are positioned; a heavier put concentration reflects more downside protection or bearish positioning. Liquidations occur when leveraged positions are closed by exchanges or brokers as prices move against those trades, which can amplify price swings.