Crypto Slumps as $4.4B Leaves Bitcoin ETFs and $1.3B in Leverage Gets Wiped Out
Institutional demand for Bitcoin has cooled sharply over the past three weeks, with U.S. spot Bitcoin ETFs posting about $4.4 billion in net outflows over a record 13-session run. BlackRock's IBIT represented more than $3.3 billion of those redemptions, signaling that large investors trimmed exposure as conditions deteriorated.
The outflows came as Bitcoin [BTC] was already testing key support. As withdrawals gathered pace, BTC broke down from the $80,000–$82,000 range and later slid toward $60,000. With ETF buying no longer absorbing supply during pullbacks, spot buyers had to carry more of the load, leaving bounces weaker and giving sellers more control.
The selling quickly broadened beyond Bitcoin. As risk appetite faded, capital rotated out of altcoins even faster. Total crypto market capitalization dropped about 15% over the past week to $2.08 trillion, pushing monthly losses beyond 22% and underscoring a wider risk-off tone.
Higher-beta assets took the hardest hit. Ethereum [ETH], Solana [SOL], and other major Layer 1 tokens fell more sharply than Bitcoin as investors reduced exposure to riskier segments. Bitcoin dominance (BTC.D) rose toward 58%, while the Altcoin Season Index stayed stuck in the low 40s, well short of altseason conditions. With participation contracting and capital leaving altcoins, rallies are proving harder to sustain without a stabilization in demand across major ecosystems.
Derivatives positioning amplified the move. As BTC and major altcoins lost support, rebound bets came under pressure and cascaded into forced liquidations, adding supply and accelerating the decline. CoinGlass data showed more than $1.3 billion liquidated in 24 hours, including over $1 billion from long positions. Bitcoin and Ethereum accounted for $457.5 million and $356 million, respectively.
The washout reduced excess leverage, but it also left the market searching for fresh demand, keeping volatility elevated. Until buyers absorb the additional supply, a durable floor may remain elusive.
Final Summary: Spot Bitcoin ETF outflows totaled $4.4B, removing a key liquidity tailwind and weighing on the broader market. Crypto assets shed about 15% in a week as $1.3B in liquidations accelerated deleveraging and kept volatility high.
