Key Takeaways:
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Heavy outflows from Bitcoin exchange-traded funds and large liquidations show the market is pushing out heavily indebted buyers.
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Bitcoin options metrics show pro traders are hedging against further price declines as tech stocks unload.
Bitcoin (BTC) slipped below $73,000 on Wednesday after briefly retesting $79,500 on Tuesday. That downturn reflected a decline within the tech-heavy Nasdaq index, driven by a weak sales outlook from chipmaker AMD (AMD US) and disappointing U.S. employment data.
Traders are actually fearing further Bitcoin price pressure as spot exchange-traded funds (ETFs) recorded outflows of over $2.9 billion in twelve trading days.
Bitcoin spot ETF every day net inflows, USD. Source: CoinGlass
The average every day net outflow of $243 million from U.S.-listed Bitcoin ETFs since Jan. 16 almost matches Bitcoin's rejection at $98,000 on Jan. 14. The subsequent 26% correction over three weeks triggered $3.25 billion in leveraged long BTC futures liquidations. Unless the client has deposited additional margin, any leverage that exceeds 4 times is already destroyed.
Some market participants attributed the recent crash to the continuing aftermath of the $19 billion liquidation on October 10, 2025. This incident was reportedly triggered by a performance error in database queries on the Binance exchange, which resulted in delayed transfers and incorrect data feeds. The exchange acknowledged that there have been technical issues in the course of the selloff and paid out over $283 million in compensation to affected users.
According to Haseeb Qureshi, managing partner at Dragonfly, “The large liquidations at Binance didn’t replenish, however the liquidation engines proceed to fireplace anyway. This resulted in market makers being worn out and leaving them unable to choose up the pieces.” Qureshi added that the October 2025 crash “didn’t permanently shut down the market,” but noted that market makers “will need time to get well.”
Source: X/hosseeb
The evaluation suggests that cryptocurrency exchanges’ liquidation mechanisms “should not designed for self-stabilization like TradFi mechanisms (circuit breakers, etc.)” and as an alternative focus solely on minimizing bankruptcy risks. Qureshi points out that cryptocurrencies are a “long series” of “bad things,” but historically they eventually get well.
BTC options bias signals traders doubt $72,100 low
To determine whether skilled traders reacted bearishly after the crash, one should evaluate the BTC options markets. During periods of stress, demand for put (sell) instruments increases sharply, pushing the delta skew metric above the neutral threshold of 6%. Excessive demand for downside protection typically signals a insecurity on the a part of bulls.
BTC 30 Day Options 25% Delta Skew (Put Call) at Deribit. Source: laevitas.ch
The BTC options delta skew reached 13% on Wednesday, a transparent sign that skilled traders should not convinced that Bitcoin price has bottomed out at $72,100. This skepticism is predicated partially on fears that the technology sector could suffer from increasing competition as Google (GOOG US) and AMD launch proprietary artificial intelligence chips.
Another source of unease for Bitcoin holders are two unrelated and unfounded rumors. First, a $9 billion Bitcoin sale by a Galaxy Digital customer in 2025 was previously attributed to quantum computing risks. However, Alex Thorn, head of research at Galaxy, denied these rumors in an X post on Tuesday.
The second speculation concerns Binance's solvency, which became more significant after the exchange faced technical issues on Tuesday that temporarily halted withdrawals. Current on-chain metrics suggest that Bitcoin deposits on Binance remain relatively stable.
Given the present uncertainty surrounding macroeconomic trends, many traders have decided to show their backs on cryptocurrency markets. This shift makes it difficult to predict whether Bitcoin spot ETF outflows will proceed to exert downward pressure on the worth.
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