Bitcoin faces third liquidation risk as ETF outflows slow by 66%
Bitfinex analysts warn of a potential third liquidation wave for Bitcoin, with $79,821 as a key trigger level. Bitcoin ETFs saw $228.4 million in outflows last week, a 66% decrease from the prior week. Futures open interest rose 4.3% despite falling prices, indicating increased leverage. Analysts note mixed signals, with some seeing easing selling pressure while others caution about weak demand.
How this was made

The 30-second read
Why it matters
The identified trigger level and ETF outflow data provide a concrete metric for traders to assess downside risk.
Market read
New data on liquidation thresholds and ETF withdrawals suggest heightened short-term bearish pressure on Bitcoin.
What to watch
Possible hidden demand from long-term institutional investors not captured in short-term ETF flow data.
Background
Bitfinex Alpha analysts monitor leveraged exposure and ETF flows to gauge Bitcoin's liquidation risk.
Ticker impact
Bitfinex analysts identified a $79,821 liquidation trigger and noted $228.4M weekly outflows from Bitcoin ETFs, indicating heightened downside risk.
likely pressure as market prices in the liquidation risk and reduced ETF inflows
Leverage rebuilds near the trigger level and significant ETF withdrawals suggest limited buying demand, increasing probability of a liquidation wave.
Market effects
Crypto sector may see broader risk aversion as leveraged positions unwind.
U.S. spot Bitcoin ETFs outflows could affect related crypto investment products.
Potential spillover to other digital assets, especially Ethereum, due to correlated ETF flows.
Counterpoint
If leveraged longs hold, a bounce above $84,400 could trigger profit-taking and a short squeeze.
Key entities
- analystBitfinex
Provides leverage and ETF flow analysis for Bitcoin.
- analystViaBTC
Commented on ETF outflow trends.



