Crypto Liquidation Surge: Bitcoin Drops as ETF Outflows Hit $282M

Bitcoin falls to $77,404 as BTC ETFs see $282.7M in outflows. Over $400M liquidated across crypto markets while investors eye upcoming US CPI data.

The Crypto Fear and Greed Index remains firmly in “Greed” territory at 68 points, despite recent market turbulence. Meanwhile, the Altcoin Season Index sits at just 37 points, suggesting that investors are not yet ready to rotate convincingly into higher-risk tokens.

Bitcoin Slides While Ethereum Holds Steady

At the time of writing, Bitcoin (BTC) is trading at $77,404.21, marking a 0.81% decline over the last 24 hours and a 4.42% drop over the past week. Ethereum (ETH) showed more resilience, trading at $2,479.66 with a 0.38% daily gain, though it remains down 1.40% on the week.

Other major assets faced heavier selling pressure. XRP dropped 2.09% to $1.35, while Hyperliquid fell 3.73% to $80.21. Solana (SOL) retreated 1.25% to $99.96, and BNB saw a modest decline of 0.62% to $714.64.

Zcash (ZEC) experienced a sharp daily correction of 8.61%, falling to $1,115.51, yet it maintains a 15.27% gain for the week. Dogecoin (DOGE) also slipped, losing 1.59% to trade at $0.08401.

Over $400 Million in Liquidations

The derivatives market is showing signs of significant stress. Data from CoinMarketCap reveals that total liquidations reached $403.48 million. Long positions bore the brunt of the volatility, accounting for nearly 77% of the total at $310.01 million, while short positions made up $93.47 million.

Notably, open interest rose by 11.06% to $470.38 billion. This is a critical departure from a standard liquidation event where leverage is typically flushed out. Instead, new positions are continuing to accumulate, potentially leaving the market highly sensitive to further sharp price swings.

Derivatives trading volume saw a slight decrease, falling 4.01% to $752.58 billion.

Bitcoin ETFs Record $282.7 Million Outflow

Selling pressure is most evident in U.S. spot Bitcoin ETFs. According to information from FarSide Investors, these funds recorded a total net outflow of $282.7 million on September 10.

The ARK 21Shares Bitcoin ETF saw the largest withdrawal at $164.3 million. Other notable outflows included Fidelity (FBTC) at $33.6 million, Grayscale (GBTC) at $36.4 million, BlackRock (IBIT) at $24.5 million, VanEck (HODL) at $15.3 million, and Bitwise (BITB) at $12.6 million. The only fund to buck the trend was Morgan Stanley (MSBT), which saw a $4 million inflow.

Pressure Extends to Ethereum and Solana

On September 10, Ethereum ETFs also shifted to net outflows, losing a total of $29.9 million. BlackRock (ETHA) saw $18.6 million in exits, Fidelity (FETH) lost $25.2 million, and Grayscale (ETHE) dropped $7.7 million. Offsetting some of these losses, BlackRock (ETHB) attracted $13.9 million, while the smaller Grayscale Ethereum fund added $7.7 million.

Solana products remained relatively neutral, recording a minor outflow of just $500,000 following an $11.2 million inflow on September 9.

Hyperliquid ETFs saw no net flows for the day after losing $5.3 million in the previous session.

XRP stood out as a bright spot. Spot ETFs for the asset attracted $5.14 million in total, with the entire inflow directed toward the Franklin XRP ETF.

CPI Emerges as the Next Crypto Market Test

The macroeconomic environment remains the primary risk factor for Bitcoin. The yield on 10-year U.S. Treasuries hovered around 4.96% on Friday, nearing the psychological 5% threshold as markets price in higher interest rate expectations from the Federal Reserve. The probability of a 25-basis-point hike at next week’s meeting has reached approximately 71%.

Oil prices also remain above $100 per barrel, fueling concerns that an energy shock could keep inflation elevated. This makes the upcoming U.S. Consumer Price Index (CPI) report particularly critical for crypto assets.

The combination of three consecutive days of BTC ETF outflows, rising leverage, and Treasury yields near 5% leaves the market vulnerable to inflation data. A stronger-than-expected CPI could further solidify rate hike expectations, while a lower reading might provide Bitcoin the momentum needed to break its current losing streak.