ETF outflows and renewed market caution drive volatility as traders face steep losses from forced liquidation events.
Bitcoin’s price plummeted to $82,000 in the early hours of Friday, leading to almost $2 billion in leveraged liquidations across the crypto market in the past 24 hours.
The drop occurred after a volatile week for Bitcoin, which had previously hit a record high of around $126,199. The sharp decline was influenced by heavy ETF outflows and a risk-off sentiment, causing extensive forced liquidations predominantly impacting long positions.
Arthur Hayes, co-founder of BitMEX, previously warned that tightening liquidity and signs of credit stress could push Bitcoin into the mid-$80,000 range. He expected equities to drop 10–20% and the 10-year yield to spike, forcing emergency liquidity measures that could later ignite a Bitcoin surge toward $200,000–$250,000.
Hayes also noted that ETF basis trades and digital asset treasury flows, key drivers of earlier demand, have stalled, exposing a true liquidity crunch.
