Bitcoin is facing increased selling pressure as it approaches the Good Friday holiday weekend, with CME futures and ETF activity temporarily halting. Currently trading just above $66,600, the cryptocurrency is experiencing a liquidity squeeze, exacerbated by large holders shifting to net selling and weak spot demand in the U.S. Despite recent highs in ETF and corporate purchases, overall demand remains negative, with significant distributions from wallets holding 1,000 to 10,000 BTC.

This downturn is particularly concerning as Bitcoin’s price floor is increasingly tied to expectations around Federal Reserve rate cuts. The upcoming U.S. inflation data could further challenge this support, especially if it undermines hopes for looser monetary policy. Institutional activity has not translated into stronger price support, as the market becomes more sensitive to macroeconomic trends rather than broad-based accumulation.

Traders should be cautious as the absence of institutional bids over the holiday weekend may amplify volatility. With a negative gamma zone forming below $68,000, any further price declines could trigger a self-reinforcing sell-off, making it critical to monitor upcoming inflation data closely.

Source: coindesk.com