Crypto Market Drops as ETF Outflows and Leverage Liquidations Hit Hard
The crypto market fell 1.5% over the past 24 hours, deepening a seven-day slump to 4.1%. A mix of institutional selling, extreme leverage, and macroeconomic spillovers from U.S. equities helped trigger the downturn.
On August 1, spot Bitcoin ETFs recorded $812 million in net outflows, the largest single-day exodus in five months. The biggest contributors were Fidelity and ARK Invest, withdrawing $331M and $328M respectively. The withdrawals follow a 14% monthly BTC rally, which likely prompted institutional profit-taking.
ETF issuers typically sell underlying Bitcoin to meet redemptions—intensifying selling pressure across the market. The hit was worsened by Bitcoin’s increasing correlation with equities. The…
