Bitcoin (BTC) faces risk of drop to $55K on rising outflows; DeFi crypto reports strong on-chain activity
Bitcoin is under renewed pressure as accelerating capital outflows and weakening macro conditions raise the risk of a deeper move toward the $55,000 range. Analysts are closely watching the $60,000 level as critical support, warning that a decisive break could trigger a sharper flush amid thinning liquidity and continued ETF outflows. While large-cap assets consolidate under defensive positioning, selected DeFi protocols are reporting steady on-chain activity, highlighting uneven capital distribution across the broader crypto market.
Bitcoin tests key $60K support
Bitcoin fell below $63,000 on Feb. 24, declining more than 5% at one point, as analysts warned of a potential move toward the mid-$50,000 range amid accelerating capital outflows. The asset briefly traded near $62,900 and remains under pressure, with market participants closely monitoring the $60,000 level as key technical support. A break below that threshold, analysts say, could open the door to a deeper slide toward $53,000–$55,000.
Market strategists point to a combination of geopolitical tensions, tariff uncertainty, and tightening liquidity as factors weighing on risk appetite. Bitcoin is on track to record six consecutive weekly declines, a pattern last seen in May 2022. Spot bitcoin ETFs have logged five straight weeks of outflows, with approximately $4 billion withdrawn from global crypto exchange-traded products during that period. U.S. spot ETF balances have reportedly declined by around 100,000 BTC since the October cycle peak, reflecting institutional de-risking.
On-chain and derivatives data indicate a defensive market structure. Active addresses have fallen below typical ranges, realized capital is contracting, and unrealized losses dominate transaction flows. The 90-day moving average of open interest change remains negative across major crypto assets, suggesting reduced leverage appetite and compressed speculative positioning. Spot trading volumes have also cooled, leaving prices vulnerable to sharp swings in thin liquidity conditions.
Despite the pressure, broad capitulation has not fully materialized. Glassnode data show more than 400,000 BTC accumulated between $60,000 and $70,000 during the recent downturn, signaling dip buying within that band. Bitcoin was trading near $63,400 at the time of publication, with analysts noting that holding above $60,000 could allow continued consolidation, while a decisive breakdown may shift focus toward the mid-$50,000 region.
Mutuum Finance (MUTM)
Mutuum Finance has recorded notable on-chain activity, with more than $20.6 million in inflows and over 850 million tokens distributed among more than 19,000 holders of its native MUTM token, currently priced at $0.04.
By supplying crypto assets to the protocol, users receive mtTokens as proof of deposit. These mtTokens can be staked within the safety module. Under the buy-and-distribute mechanism, MUTM tokens are purchased from the open market using a portion of the fees generated by the protocol and distributed to eligible stakers as dividends.
Mutuum Finance has released a beta version of its lending and borrowing protocol on the Sepolia testnet. The test environment allows users to interact with core features, including:
- Debt tokens, which are minted upon borrowing and track principal and interest accrual
- An automated bot for liquidators that keeps track of risk and initiates liquidations
- The Stability Factor measures how secure your loan is by comparing the value of your collateral to the amount you’ve borrowed, with a higher factor indicating more safety against price changes.
- mtTokens, enabling users to observe how deposits function within the system
Supported testnet assets currently include ETH, USDT, LINK, and WBTC.
The team recently stated that the Sepolia beta has surpassed $90 million in testnet total value locked (TVL). In a protocol development update, the team noted that it is working on additional features while improving key components of the codebase, including optimizations to the stability factor. A new feature rollout has been indicated for the coming week.
Prior to the V1 protocol launch, the lending and borrowing smart contracts underwent a security audit conducted by Halborn, a firm that has also reviewed projects such as Solana and Coinbase. In addition, the MUTM token contract was audited by CertiK, achieving a Token Scan score of 90 out of 100.
Overall, bitcoin remains positioned near a critical technical threshold, with macro pressures and capital outflows shaping the short-term outlook. Whether the $60,000 level holds or gives way may determine if consolidation continues or a deeper correction unfolds. At the same time, activity within selected DeFi protocols indicates that capital allocation remains selective, with development progress and on-chain engagement continuing despite broader market weakness.
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