Analyst: Bitcoin's forced sell-off has run out of fuel, so we need to pay attention to ETF capital return signals

Comparing news, Bitfinex analysts released a report saying that derivatives traders had basically been cleaned out during the Bitcoin sell-off at the end of June. Bitcoin fell below $58,000 on July 1. Since then, the average daily liquidation amount has remained far below the typical $400 million to $500 million range this year, indicating that despite the macro shock, the forced sell-off pressure was minimal, and the decline in the crypto market was less than the leveraged stock theme because the “fuel” of forced sell-offs had been exhausted.

Bitfinex analysts expect investors to remain defensive until next week's US jobs report (the next major macro catalyst after the Federal Reserve meeting). They believe that instead of worrying about a new round of forced liquidation, the more critical question is whether cash inflows to spot Bitcoin ETFs can return after the market has a clearer judgment on the Fed's path.

The analyst wrote: We believe that positions will remain defensive while the risk of the Fed's interest rate hike still exists. Whether institutional buyers are aggressive or price sensitive is a sign that traders have yet to show up.

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