ETF Outflows and Long Liquidations Pressure Crypto Market
Spot Bitcoin ETF outflows more than doubled to $120.24 million and about $379.42 million of leveraged positions, mainly longs, were liquidated in 24 hours.
The crypto market fell after spot Bitcoin ETF outflows more than doubled to $120.24 million on Wednesday and forced liquidations wiped out about $379.42 million of leveraged positions across 144,490 traders in a 24-hour period. Total crypto market capitalization slipped to about $2.65 trillion, roughly 2.03% below the prior session’s high.
Spot Bitcoin ETFs recorded $120.24 million in outflows on Wednesday, up from $46.65 million on Tuesday, taking two-day outflows to $166.89 million since the week began. ETF assets declined to $99.33 billion from $103.34 billion on Sept. 3.
Liquidations totaled $379.42 million over 24 hours, with $282.38 million coming from long positions and $97.04 million from shorts, a near three-to-one ratio. Bitcoin accounted for $74.39 million of the liquidations; the remaining $305.03 million was concentrated in other tokens. Exchange data shows forced selling from liquidations can push prices into stop-loss orders and trigger further sales.
The market lost the $2.68 trillion level on Sept. 7, a threshold that has capped recovery attempts since. Analysts identify $2.68 trillion as the first level to reclaim, with $2.73 trillion and $2.77 trillion noted as higher markers; a fall below $2.55 trillion would establish a lower floor.
Altcoins experienced outsized losses in the short term. Uniswap’s token UNI fell 12.1% in 24 hours to $6.07, while remaining up about 52% over the past month. Uniswap protocol revenue on Wednesday was $576,342, about 21% below its weekly average, with 61% of that revenue generated on the Robinhood Chain. UNI has traded inside a rising channel since Aug. 14; a daily close below $5.93 would expose a channel floor near $4.13, while reclaiming $6.72 would repair the pattern and a clear above $7.61 would be a breakout.
Market participants noted a thinner profile ahead of U.S. inflation data due Friday. One analyst warned that a market with little fund demand and three long liquidations for every short is more vulnerable to unexpected macro prints; July inflation was running at 3.4%.
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