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Bitcoin and Ether open interest collapsed in the wake of $8.35 billion in long liquidations last quarter, leaving the market leaner but less coiled heading into Q3, according to institutional trading infrastructure firm Talos.
The forced unwind drained speculative excess from both major assets, while simultaneous pressure from ETF outflows, reduced purchases by Strategy, and eroding market depth compounded the liquidity squeeze.
$8.35 Billion in Liquidations Resets the Derivatives Stack The headline figure from Talos's assessment is the long liquidation total: $8.35 billion unwound across the quarter.
That scale of forced selling in the futures complex typically signals a meaningful clearing of crowded positioning, and Talos framed the outcome accordingly — less leverage on the books as Q3 opens.
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