Bitcoin ETFs Bleed $244 Million as $1.19 Billion Liquidation Wave Shakes the Market
US spot Bitcoin ETFs recorded $244 million in outflows while roughly $1.19 billion in leveraged positions were liquidated. Here is what drove the move and what traders are watching next.
US Spot Bitcoin ETFs Record $244 Million in Outflows
Thursday’s data from US-listed spot Bitcoin funds showed net withdrawals of $244 million, a reminder that institutional demand is far from one-directional. A Zcash-linked fund extended a run of outflows seen throughout October, and Ether-focused products also posted redemptions. XRP-linked ETFs were the only crypto exchange-traded products to finish in positive territory, a divergence that may point to allocators rotating between assets rather than leaving the sector entirely.
A $1.19 Billion Liquidation Wave Hits Leveraged Traders
Over 24 hours, about $1.19 billion in leveraged crypto positions were liquidated, and more than $1 billion of that came from traders betting on higher prices. Ether took the heaviest damage: roughly $356 million in ETH positions were wiped out, more than the $298 million lost on Bitcoin, even though Bitcoin’s market value is more than five times larger. Relative to size, Ether liquidations ran about six times faster than Bitcoin’s. Bitcoin slid from about $83,200 to as low as roughly $80,400, while Ether fell more than 3% to near $2,490.
What Triggered the Sell-Off
Several pressures converged at once. Minutes from the Federal Reserve reportedly showed that most officials expected another rate hike before year-end, reviving concerns about tighter financial conditions. A report that the Pentagon was preparing for renewed combat in Iran pushed oil higher, and a warning from Ethereum researcher Justin Drake that artificial intelligence could eventually weaken the cryptography protecting wallets added to the nervousness. Bitcoin had spent much of the week trading between $83,000 and $87,000, so leverage had built up, and the break lower knocked over many positions.
Rebound After Trump Rules Out an Iran Strike
Sentiment improved after President Donald Trump said the United States would not strike Iran before the midterm elections. Bitcoin recovered to roughly $82,200 and oil prices eased. About 78% of the roughly $25 million liquidated over four hours during the bounce came from short sellers, a sign that the rebound squeezed bearish bets. The Crypto Fear & Greed Index stood at 59 on Friday, down from 64 a day earlier, still in the greed zone but clearly cooling.
Why the Anniversary Matters
The anniversary of October 10, 2025 arrives tomorrow. On that day a record $19 billion in positions was liquidated in a single session. Thursday’s total was roughly one-sixteenth of that figure, so the current episode is far milder, but it explains why leverage remains a key variable for traders.
What to Watch Next
Investors should track three things: whether daily ETF flows stabilize or keep tilting negative, how the Federal Reserve’s rate path evolves, and whether geopolitical headlines keep driving oil and risk assets. A sustained move back above $83,000, where Thursday’s selling began, would ease pressure, while a retest of the $80,400 low could reopen the door to further liquidations. This article is for informational purposes only and is not investment advice.
