Despite the recovery, Bitcoin remained down more than 5.3% over the previous 24 hours. The wider CoinDesk 20 (CD20) index also recorded significant losses, declining 6.28% during the same period.
Market pressure intensified as US-listed spot Bitcoin ETFs recorded $430.2 million in net outflows on Thursday, reversing the previous day's positive flows and contributing to a broader retreat from digital asset investments.
Bitcoin ETF Outflows Reach $430 Million
Data from SoSoValue showed that Thursday's withdrawals were led by Fidelity's Wise Origin Bitcoin Fund (FBTC), which recorded $199.9 million in net outflows.
BlackRock's iShares Bitcoin Trust (IBIT) followed with approximately $105 million in withdrawals, making the two funds the largest contributors to the day's negative flows.
The outflows reversed Wednesday's $74.6 million in net inflows. As a result, cumulative net redemptions across US spot Bitcoin ETFs reached $869.8 million for the week through Thursday.
The figures highlighted a significant change in investor positioning, with institutional investment products experiencing substantial withdrawals as broader financial markets came under pressure.
Technology Stock Sell-Off Adds Pressure to Bitcoin
The weakness in cryptocurrency markets coincided with a sharp decline in US equities. The Nasdaq Composite dropped 5.5% on Thursday, while the S&P 500 fell 4.3%.
Analysts from FalconX and GSR linked the market sell-off to concerns that a potential Democratic sweep in the US midterm elections could slow developments in artificial intelligence.
The simultaneous decline across technology stocks and digital assets highlighted the sensitivity of cryptocurrency markets to changes in broader investor risk appetite.
Simon-Peter Massabni, head of business development at broker XS.com, said in emailed comments that the stock market downturn was affecting crypto as asset managers liquidated alternative investments to meet margin calls and reduce portfolio leverage.
Crypto Liquidations Reach $1.26 Billion
Leveraged trading activity further intensified the Bitcoin decline. According to CoinGlass, cryptocurrency liquidations reached $1.26 billion over the previous 24 hours.
Long positions accounted for $1.12 billion of the total, representing the overwhelming majority of liquidated positions. These trades were based on expectations that cryptocurrency prices would rise.
The scale of long liquidations indicates how forced position closures amplified selling pressure during the market downturn, adding to the weakness already coming from ETF withdrawals and falling equity prices.
Bitcoin's Previous Recovery Showed Signs of Weak Demand
Bitcoin's earlier rebound had also displayed signs of limited underlying buying interest. During Wednesday's recovery, Bitcoin futures open interest remained broadly unchanged, suggesting that the move was not accompanied by a significant increase in outstanding futures positions.
Bitcoin also traded at a discount on Coinbase compared with Binance, a development that pointed to relatively subdued buying demand in the US market.
These indicators raised questions about the strength of the recovery before Thursday's renewed selling pressure erased the gains.
Although Bitcoin managed to regain $76,000 on Friday, the combination of substantial ETF withdrawals, leveraged liquidations and weakness in technology stocks continued to weigh on market sentiment. The latest figures illustrate how closely cryptocurrency trading conditions remain connected to broader financial market movements.
source: coindesk
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.
The articles on Hokanews are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.
Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.
