Bitcoin Price Prediction: Will Mass Liquidation Clean Slate Trigger Recovery?

Market Overview - Bitcoin price experienced a decline, trading near $113,039, down approximately -2.18% on the day, with a market cap of $2.37 trillion and a trading volume close to $60 billion [2] - The cryptocurrency market faced $1.7 billion in liquidations, primarily from long positions, which accounted for $1.62 billion of the total [1] Liquidation and Funding Rates - The sell-off was triggered by a spike in funding rates following the Federal Reserve's recent cut, leading to excessive leverage and cascading liquidations [3] - Despite the recent sell-off, open interest remains high, indicating potential for further volatility in the market [4] Institutional Demand - Bitcoin reserves on exchanges have decreased, with approximately 2.43 million BTC currently held, reflecting a -0.47% decline [5] - Major corporate holders, including Michael Saylor's Strategy and Tokyo-listed Metaplanet, have increased their Bitcoin positions, purchasing 850 BTC for $99.7 million and 5,419 BTC for $632.5 million, respectively [6] - The combined purchase of 6,269 BTC by these institutions suggests that institutional demand remains strong despite market uncertainties [7]