Crypto Longs Liquidated $404M in Four Hours as Bitcoin Tests $80K

Liquidation Wave Hits Leveraged Longs

Bitcoin's intraday slip beneath the $80,000 threshold wiped out $404 million in leveraged long positions across major derivatives venues within a four-hour window, according to liquidation tracking data. The flush coincided with a sharp reversal in spot bitcoin ETF flows, suggesting the move caught a crowded long book off guard.

ETF Flows Reverse Course

Spot bitcoin ETFs registered $773 million in net outflows across Thursday and Friday, erasing three consecutive sessions of positive inflows, per SoSoValue data. The two-day withdrawal streak marks the largest redemption period since the funds' post-approval rally phase and signals institutional caution at current price levels.

Derivatives Structure Amplifies Move

The liquidation cluster indicates heavy leveraged positioning had accumulated above the $80K level, leaving longs vulnerable to even a brief breakdown. Open interest on perpetual futures contracts declined in tandem with the price drop, pointing to forced unwinding rather than fresh short initiation. Funding rates across major venues compressed from elevated levels, confirming the flush reduced speculative froth.

Flow Dynamics Signal Coordinated De-risking

ETF outflows often precede or accompany derivatives-led selloffs as institutional allocators reduce exposure. The simultaneous occurrence — ETF redemptions and long liquidations — points to coordinated de-risking rather than isolated technical selling. Volume on spot markets remained elevated during the dip, suggesting two-way flow rather than a vacuum-driven crash.

Source: The Block