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Bitcoin Rebounds Above $70,000 After Flash Crash as ETF Outflows, Liquidations Rattle Market

Record ETF volumes with surging liquidations signal a fragile backdrop.

Overview

  • Bitcoin briefly fell to roughly $60,000, its lowest level since October 2024, before recovering above $70,000 in its biggest one‑day gain since 2023, though it remains down for the week.
  • U.S. spot bitcoin ETFs logged a second straight day of net outflows with $545 million on Wednesday and $817 million over two days, led by BlackRock’s IBIT.
  • IBIT notched a record near $10 billion in daily trading volume during the sell‑off, while Coinglass tracked $2.67 billion in 24‑hour liquidations and options data showed elevated demand for downside protection.
  • On‑chain indicators show redistribution: large holders sold about 81,000 BTC over eight days and whale inflows to Binance hit their highest level since 2022, with exchange inflows rising.
  • ETF custody levels have only slipped about 6–7% from highs, Binance’s SAFU fund disclosed a 3,600 BTC purchase, and Treasury Secretary Scott Bessent stated the government lacks authority to buy or bail out crypto.