Written by Marcel Pechman ⁠, Staff Writer.Reviewed by Ray Salmond ⁠, Staff Editor.Written by Marcel Pechman ⁠, Staff Writer.Reviewed by Ray Salmond ⁠, Staff Editor.

Bitcoin bulls eye fresh positions after BTC price drops under $71K

MarketsPublishedJun 1, 2026

Selling from all angles pushed Bitcoin below $71,000 at the weekly open, but early bullish positioning in BTC derivatives may signal the start of a recovery.

Key takeaways:

• Whale’s bullish positioning in the Bitcoin derivatives market is failing to counter the heavy spot selling pressure. 
• The slight discount on USDT indicates capital is exiting to fiat, exposing the Bitcoin futures leverage risks.

Bitcoin (BTC) dropped below $71,000 on Monday for the first time in seven weeks, liquidating $276 million in leveraged bullish positions as traders reduced their positions amid renewed military action between the US and Iran. Despite this heightened risk aversion, whales and market makers increased their bullish exposure in the Bitcoin derivatives markets.

Bitcoin top traders' long-to-short position at Binance & OKX. Source: CoinGlass

At Binance, the long-to-short ratio among top traders surged to 1.4x from 1.1x one week prior. These institutional players have gradually accumulated long positions since Bitcoin broke below $76,500 on Tuesday. Meanwhile, top traders at OKX initially expanded their short positions between Thursday and Sunday, but reversed course on Monday as their long-to-short ratio jumped to 1.9x.

Bitcoin futures aggregate open interest at major exchanges, USD. Source: CoinGlass

Aggregate open interest for Bitcoin futures across major exchanges stood at $43.5 billion on Monday, remaining flat compared to the previous week. Despite the forced liquidations, traders did not rush to close their positions at a loss. Nonetheless, further analysis is required to determine whether bullish traders are relying excessively on leverage to sustain their current positions.

Bitcoin perpetual futures annualized funding rate. Source: Laevitas

The annualized funding rate for Bitcoin perpetual futures jumped above the neutral 6% to 12% range for the first time in over six months. This data hints at growing confidence among bulls, but it also heightens the risk of cascading liquidations should Bitcoin's price fall further. Nonetheless, a modest 13% funding rate remains far from signaling market desperation.

Bitcoin spot ETF outflows contrast with AI bulls

While the weakness in Bitcoin's price can be partially attributed to rising oil prices, the tech-heavy Nasdaq Composite Index managed a 0.5% gain on Monday. Brent crude oil jumped to $95 per barrel after US officials stated that Iran had fired two ballistic missiles overnight. Additionally, Israel carried out a military incursion into southern Lebanon over the weekend.

Investors' intense focus on the AI sector has also contributed to capital outflows from the cryptocurrency market. On Monday, Anthropic, the developer of Claude AI, announced that it had confidentially filed its initial public offering (IPO) prospectus. Separately, Elon Musk’s SpaceX officially filed its own IPO prospectus.

Related: Bitcoin dip buyers place $500M in bids as $70K retest looms

USDT stablecoin / USD at major exchanges. Source: TradingView and Cointelegraph

Tether’s USDT stablecoin traded at a slight 0.10% discount over the past week, signaling capital outflows into traditional fiat currency. This data aligns with the $3.46 billion in net outflows from US-listed spot Bitcoin ETFs since May 13. Ultimately, heavy selling pressure in spot markets is likely the driver behind Bitcoin’s recent price correction.

It is still too early to claim that pro traders are flipping bullish based purely on the long-to-short ratio, especially following the recent spike in the perpetual futures funding rate. With no clear evidence that cryptocurrency market outflows are slowing, traders may remain skeptical of a sustainable short-term bull run, despite the relative strength in Bitcoin derivatives data.

This article is produced in accordance with Cointelegraph's Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.

• Markets
• Bitcoin Price
• Bitcoin ETF
• Leverage
• Market Analysis
• Bitcoin

More on the subject

Price predictions 6/1: SPX, DXY, BTC, ETH, BNB, XRP, SOL, HYPE, DOGE, ZEC5 hours agoRakesh UpadhyayBitcoin drops to seven-week low under $71K as US-Iran ceasefire hopes fade7 hours agoWilliam SubergStrategy sells 32 BTC in first Bitcoin sale since 2022; Stock falls on open11 hours agoHelen PartzPrice predictions 6/1: SPX, DXY, BTC, ETH, BNB, XRP, SOL, HYPE, DOGE, ZEC5 hours agoRakesh UpadhyayBitcoin drops to seven-week low under $71K as US-Iran ceasefire hopes fade7 hours agoWilliam SubergStrategy sells 32 BTC in first Bitcoin sale since 2022; Stock falls on open11 hours agoHelen Partz

Strategy's BTC sale turns Bitcoin treasury into market stress test

Bitcoin volatility is down 56% but analysts still expect up to 20% BTC price move

Crypto lobby spending on Republicans far outpaces Democratic support

Debate on CLARITY Act continues this week as US Senate returns

Anchorage rolls out platform to reduce crypto trading counterparty risk