Bitfinex Analysts: Bitcoin Forced Liquidation Pressure Eases, ETF Inflows to Monitor

ChainCatcher reports that Bitfinex analysts have released a report indicating that derivatives traders were largely liquidated during the Bitcoin sell-off at the end of June. After Bitcoin dropped below $58,000 on July 1, daily liquidation amounts have remained well below the typical $400 million to $500 million range seen this year, suggesting minimal forced selling pressure despite macroeconomic shocks. The Bitcoin market’s smaller decline compared to leveraged equity themes is due to the exhaustion of “fuel” for forced liquidations. Bitfinex analysts expect investors to remain defensive ahead of next week’s U.S. jobs report—the next major macro catalyst following the Fed meeting. They believe the more critical question is whether spot Bitcoin ETF inflows can return once market sentiment clarifies the Fed’s path, rather than worrying about a new wave of liquidations. The analysts wrote: “We believe positions will remain defensive as the risk of Fed rate hikes persists. The signal traders are still waiting for is whether institutional buyers are actively participating or indifferent to price.”