Bitcoin (BTC) experienced a significant drop below $71,000, marking its lowest point in seven weeks and resulting in the liquidation of $276 million in leveraged positions. This decline was influenced by renewed military tensions between the US and Iran, prompting traders to reduce their exposure. Despite the selling pressure, institutional traders, referred to as 'whales,' have increased their bullish positions in Bitcoin derivatives. The long-to-short ratio at Binance rose from 1.1x to 1.4x, while OKX saw a shift to a 1.9x ratio after initially increasing short positions. Aggregate open interest in Bitcoin futures remained stable at $43.5 billion. However, the annualized funding rate for perpetual futures surged to 12%, indicating rising confidence among bulls but also raising concerns about potential liquidations if prices fall further. Additionally, capital is flowing out of the cryptocurrency market, with $3.46 billion in net outflows from US-listed Bitcoin ETFs since mid-May, reflecting a cautious sentiment among traders.