Bitcoin broke through the $63,000 level: what is behind the new round of correction
On August 14, the leading cryptocurrency once again came under pressure, falling below the $63,000 mark. This decline brought the asset back to the lows of early August, indicating a sustained downtrend in the market. At the time of data recording, bitcoin is trading around $62,600, showing a daily decline of 1.5%. This dynamic looks particularly telling against the backdrop of stock indices, which, on the contrary, were showing growth fueled by positive producer price inflation data, which slowed to 4.7% — below market expectations.
Ether holds steady, but the overall market sentiment remains fragile
Unlike bitcoin, Ethereum has remained virtually unchanged in price over the past 24 hours, holding around $1,860. However, this relative stability should not be misleading. There is a clear imbalance in the market: weak spot demand and insufficient liquidity are combined with a high level of open interest in futures. According to Coinglass data, open interest in bitcoin on Binance has continued to grow since the beginning of July and now stands at $27.09 billion.
Of particular note is the fact that spot bitcoin ETFs recorded a two-day streak of outflows for the first time since late July. On August 12 and 13, investors withdrew a total of $192 million. This is a clear signal that institutional players are in no hurry to build up positions, despite the apparent attractiveness of current prices.
The root of the problem lies in the market structure
The key reason for the market's weakness, in my view, is precisely the weak spot demand. Positive macroeconomic news, which usually pushes the market higher, is currently not resonating with buyers. As analysts at XWIN Japan rightly note, when good news fails to drive growth, it creates a dangerous precedent: leveraged positions become vulnerable, and we could see a wave of forced liquidations.
An additional factor of pressure is the potential supply overhang around the short-term cost basis of holders near $68,700. This means that a significant portion of market participants who bought bitcoin at higher levels may seek to lock in losses at the slightest bounce, which will limit any upward momentum.
It is also worth recalling that as early as August 12, Glassnode analysts warned of the risk of a pullback to $58,500. The current dynamics fully fit this scenario. Until we see a sustained recovery in spot demand and inflows into ETFs, any attempts at growth will be limited in nature, and the risks of further decline remain elevated.
My conclusion: the market is in a consolidation phase with a downward bias. Investors should exercise caution and not rush into purchases, waiting for clear reversal signals that must be confirmed by rising volumes and a recovery in inflows into exchange-traded products.