Foreign media report that over the past three weeks, U.S. spot Bitcoin ETFs have experienced sustained large-scale capital outflows, weakening the primary buying force that previously supported market rebounds. As Bitcoin falls below its key price range, selling pressure has further spread to major tokens such as Ethereum and Solana, significantly amplifying market volatility.
Continuous outflows from ETFs weaken buying support.
The article states that U.S. spot Bitcoin ETFs have recorded net outflows for 13 consecutive trading days, totaling approximately $4.4 billion, with BlackRock’s IBIT accounting for over $3.3 billion in outflows.
The report suggests that this means some institutional funds chose to reduce their exposure as the market weakened. Previously, ETF funds had absorbed selling pressure in the spot market during pullbacks; but with this demand weakening, the spot market’s ability to absorb selling pressure has declined accordingly.
Bitcoin was already under pressure near the $80,000 to $82,000 range. As ETF outflows accelerated, the price further broke below this level, subsequently retracing to around $60,000.
The downturn spread from Bitcoin to altcoins.
The article notes that after Bitcoin weakened, market sentiment turned defensive, leading to faster outflows from altcoins. Over the past week, the total cryptocurrency market capitalization declined by approximately 15% to $2.08 trillion; month-to-date, the cumulative drop has exceeded 22%.
During this pullback, assets with higher volatility have been under greater pressure. Ethereum, Solana, and other major Layer 1 tokens have generally declined more than Bitcoin.
Meanwhile, Bitcoin's market cap dominance rose to approximately 58%, while the Altcoin Season Index, which reflects the relative strength of altcoins, remains low at around 40, indicating that capital continues to favor a defensive stance.
$1.3 billion in liquidations amplify volatility
In addition to the weakness in spot markets, the article attributes this downturn to the concentrated liquidation of leveraged positions. After Bitcoin and major altcoins broke below key support levels, traders betting on a rebound were forcibly liquidated, further amplifying selling pressure in the market.
Over the past 24 hours, total market liquidations exceeded $1.3 billion, with long liquidations accounting for over $1 billion. By asset, Bitcoin liquidations amounted to approximately $457.5 million, and Ethereum liquidations totaled approximately $356 million.
The article suggests that while this round of deleveraging has reduced excessive leverage, the market still needs time to absorb selling pressure before new buying interest returns, and short-term volatility may remain elevated.