Bitcoin dropped to an intraday low of $62,470 on Friday, its second straight day below $63,000, as spot ETF outflows topped $131 million and MSCI proposed index rules that could force Strategy and Metaplanet out of major benchmarks. The cryptocurrency recovered above $63,000 by early afternoon, leaving seven-day losses at 2.6%.
Bitcoin dropped to an intraday low of $62,470 on Friday before a relief rally pushed it back above $63,000. The move marked the second consecutive day the asset fell below that level, and it left seven-day losses at 2.6%, keeping bitcoin's market cap under $1.27 trillion.
The selling followed a similar pattern to Thursday: a brief consolidation near $63,400, a sell-off toward $62,670, and a partial recovery. However, another leg down after 8 a.m. EST dragged the price to the day's low before buyers stepped back in.
On the Investing.com five-hour chart, bitcoin slipped below $62,840 with a Bear Flag pattern active, and RSI sat near oversold at 38.65. Price hovered close to the 50% Fibonacci retracement at $62,383, a level traders were watching for a possible breakdown.
ETF Outflows Add to the Pressure
Spot bitcoin ETFs saw over $131 million in outflows. Thursday marked the second straight day, and the third time this week, that the ETFs recorded net redemptions. The sustained withdrawals suggest institutional investors may be retreating, contradicting signs of renewed interest seen the previous week.
MSCI Proposal Threatens Strategy and Metaplanet
Adding to the headwinds, index provider MSCI proposed new "non-operating company" screens for its Global Investable Market Indexes. The framework evaluates whether a company's core operating assets make up more than 50% of its total holdings, a test market observers note Strategy and Metaplanet currently fail.
Because passive index funds and ETFs track these benchmarks, removal could trigger forced institutional selling. According to Strategy's statement on X: "Bitcoin doesn't need MSCI. Neither does Strategy." MSCI's public consultation runs through Sept. 30, with a final decision due Oct. 16; approved removals could begin as early as November.
Leverage Unwinds as Longs Get Squeezed
The volatility also triggered $32 million in leveraged bitcoin position liquidations over 24 hours, with long positions accounting for $26 million — about $8 million less than Thursday. Across the broader crypto market, long liquidations totaled $94 million, compared with $72.5 million in short liquidations.
Sources: Bitcoin.com, Investing.com
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