Bitcoin's market turbulence continues as it faces substantial ETF outflows and price declines. Over the past 12 days, Bitcoin exchange-traded funds have seen outflows totaling $2.9 billion, coinciding with a drop in Bitcoin's price to under $73,000. This decline aligns with a broader market downturn, notably in tech stocks, and follows a temporary rebound to $79,500.
The cryptocurrency's struggle is mirrored in the tech sector, with the Nasdaq Index experiencing a fall due to AMD's weak sales forecast and unexpected U.S. employment data. The fear among traders is exacerbated by these ETF outflows, as they signal a reduction in risk asset exposure.
Since January 16, Bitcoin ETFs listed in the U.S. have been losing an average of $243 million daily, closely linked to Bitcoin's rejection at the $98,000 mark on January 14. This period also saw a 26% correction and $3.25 billion in liquidations of leveraged long BTC futures positions. Leverage exceeding four times has been largely eradicated unless additional margin was deposited.
Contributing to this volatility was a massive $19 billion liquidation event on October 10, 2025, reportedly due to a technical glitch at Binance. This malfunction led to delays and incorrect data, compelling the exchange to compensate users with over $283 million. Haseeb Qureshi of Dragonfly noted that Binance's failure to fill liquidations impacted market makers, though he believes the market will eventually stabilize.
Qureshi highlighted that current cryptocurrency liquidation mechanisms lack the self-stabilizing features found in traditional finance, such as circuit breakers. Despite a history of challenges, the market has historically bounced back.
Options markets reflect professional traders' skepticism about Bitcoin's current bottom at $72,100. The BTC options delta skew reached 13%, indicating increased demand for protective puts and a lack of confidence among bulls. Concerns about the tech sector's competitiveness, especially with Google and AMD's advances in AI chips, contribute to this sentiment.
Adding to market unease are rumors regarding a $9 billion Bitcoin sale by a Galaxy Digital client linked to quantum computing threats, which were subsequently denied by Galaxy's Alex Thorn. Additionally, Binance's temporary withdrawal halt fueled speculation about its solvency, although on-chain metrics show stable Bitcoin deposits at the exchange.
With macroeconomic uncertainties persisting, many traders have opted to exit the crypto market, casting doubt on whether Bitcoin ETF outflows will continue to affect its price negatively. As the situation evolves, market participants remain cautious about future developments.