Bitcoin Range-Bound as Derivatives Washout and Geopolitics Intensify

Bitcoin's price dropped to $62,800 on Monday after a derivatives washout, but the cryptocurrency remains within its established range of $59,000 to $66,000. This move was attributed to forced selling triggered by automatic liquidations in crowded positions.

The situation is not an outlier, as roughly one-sixth of the largest daily wipeouts recorded over the past month occurred recently. The market appears to be positioning itself rather than experiencing a capitulation event.

Oil prices rose 4% due to geopolitical tensions between the US and Iran, adding another headwind for risk assets including cryptocurrency. However, spot Bitcoin ETF flow data showed $90.44 million in net inflows last Friday, breaking an eight-week run of net outflows.