Bitcoin and Ether entered the third quarter with sharply lower open interest after $8.35 billion in long liquidations. ETF outflows, weaker Strategy purchases and declining market depth also reduced liquidity, according to Talos.
Bitcoin and Ether entered the third quarter with sharply lower open interest after $8.35 billion in long liquidations. ETF outflows, weaker Strategy purchases and declining market depth also reduced liquidity, according to Talos.
Crypto markets entered the third quarter with less leverage but thinner liquidity following a second-quarter reset, according to Talos. Open interest in Bitcoin and Ether fell sharply after $8.35 billion in long positions were liquidated.
Crypto markets entered the third quarter with less leverage but thinner liquidity following a second-quarter reset, according to Talos. Open interest in Bitcoin and Ether fell sharply after $8.35 billion in long positions were liquidated.
The decline matters because leverage and liquidity shape how markets absorb trading activity. While lower open interest indicates that leveraged exposure has been reduced, weaker liquidity means less market depth is available.
Several pressures contributed to the liquidity decline. Talos pointed to outflows from exchange-traded funds, weaker Bitcoin purchases by Strategy and falling market depth.
Together, the figures show a market starting the quarter with reduced leveraged positioning and less liquidity. The reset leaves Bitcoin and Ether trading under different conditions from those seen before the long liquidations.
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