Is this short-term deleveraging or a deeper trend shift?

Near term: deleveraging. Medium term: narrative stress.

The current move has all the hallmarks of a forced unwind rather than a fundamental collapse. ETF outflows, reduced risk appetite, and tighter liquidity conditions are pressuring leveraged positioning. That said, the divergence versus gold is real and matters. Crypto is behaving like a high-beta liquidity asset, not a defensive store of value, which weakens the “digital gold” framing in this phase of the cycle.

This does not kill the long-term thesis, but it re-anchors crypto firmly to global liquidity, not safe-haven demand.

Are you buying the dip or staying on the sidelines?

I would not aggressively buy this first leg down.

Historically, sharp crypto drawdowns linked to macro risk-off and ETF outflows tend to overshoot before stabilising. Catching the first dip is usually premature unless you are a long-term allocator scaling very slowly.

A more prudent stance is:

Small, staggered adds only if this is a core long-term position.

Otherwise, wait for evidence of stabilisation: slowing outflows, compressed volatility, and basing price action.

Next key levels for Bitcoin

$72k–70k: Probable liquidity test zone. A bounce here would suggest this is still a corrective phase.

$65k–68k: Deeper washout risk if macro conditions deteriorate or ETF outflows accelerate.

Below $65k: That would signal a more meaningful regime shift and warrant caution.

Big picture

Crypto: Still a liquidity-sensitive risk asset in this cycle. Volatility is the cost of participation.

Gold: Currently winning the safe-haven trade, reinforcing its role during policy and geopolitical uncertainty.

Narrative reset: Crypto’s long-term adoption story remains intact, but its defensive credentials are being tested and, for now, failing.

Bottom line

This looks like a painful but normal deleveraging phase, not the end of the cycle. However, it is too early to be confident the lows are in. Patience is an asset here. If buying, do it slowly. If trading, respect the downside risk first.