Bitcoin Recovers After Liquidation Wave and ETF Redemptions
Bitcoin sank to about $80,300 on Thursday amid oil above $100 and forced exits from leveraged long trades, then climbed back into the low $83,000s by Friday morning. Spot Bitcoin ETFs recorded a second straight daily net redemption, totaling $244.1 million on Thursday, while U.S.-linked wallets moved 12,267 seized bitcoins worth roughly $1.01 billion. Crypto liquidations over 24 hours reached $1.14 billion, with bitcoin longs accounting for about $270 million, as easing Treasury yields and reduced Iran-strike fears helped stabilize markets.
Bitcoin's Thursday slide to $80,315 came as oil stayed above $100 and leveraged positions were closed. By Friday morning, the hourly range had reached $83,453, with a recent Coinbase print at $83,134, roughly 0.9% above the window's opening level.
Spot Bitcoin ETFs saw $244.1 million leave on Thursday, following Wednesday's $484.9 million withdrawal. Fidelity's fund accounted for $197.1 million of Thursday's outflow; Franklin's EZBC was the only positive flow at $4.7 million. Arkham-linked wallets moved 12,267 seized bitcoins, about $1.01 billion, without confirmation of a sale.
The volatility may affect retail and institutional crypto investors through forced liquidations and ETF redemptions, while the seized-bitcoin transfer could heighten scrutiny of government custody. If yields stay high or oil remains elevated, risk appetite could remain fragile, potentially influencing how savers and funds treat bitcoin as a portfolio asset. Easing yields and reduced Iran-strike fears may support sentiment, but the episode could reinforce caution around leverage.