Bitcoin is trading near $65,300 as U.S. spot bitcoin exchange-traded funds posted $465 million in combined outflows on July 23 and July 24. Redemptions hit $225.1 million on the first day and $240.08 million on the second, ending a seven-session run that had pulled in nearly $1 billion over the prior week. The withdrawals came as U.S. net liquidity climbed to $5.92 trillion, with the Federal Reserve's reverse repo buffer nearing zero, creating a complex macro backdrop for the asset.
U.S. Spot Bitcoin ETFs Record $465 Million Outflows Over Two Days
U.S. spot bitcoin exchange-traded funds posted $465 million in combined outflows on July 23 and July 24. Redemptions reached $225.1 million on July 23 and $240.08 million on July 24, ending a seven-session inflow streak. The withdrawals left the week with $33.79 million in net inflows overall. Bitcoin absorbed the outflows without significant price disruption, trading between $63,700 and $65,400 during the period before settling near $65,000. U.S. spot bitcoin ETFs have shed more than 160,000 BTC since their October 2025 peak, marking the largest annual drawdown since the products launched in January 2024.
Ethra Invest CEO Attributes Decline to Leverage Liquidations
Ethra Invest chief executive Saeed Al-Marri told Forbes that bitcoin's pullbacks have been driven by forced selling rather than a broad retreat from the asset. Al-Marri stated: "Right now, longs are being liquidated six times as often as shorts (6 to 1), which tells you this is bullish bets getting wiped out, not a broad exit from the asset." A mid-July drawdown wiped out $73.15 million in bitcoin positions in a single day, with $62.63 million coming from long traders and $10.52 million from shorts, matching the six-to-one ratio Al-Marri described.
U.S. Net Liquidity Reaches $5.92 Trillion as Reverse Repo Facility Empties
U.S. net liquidity, a measure of cash available to flow into risk assets after netting the Federal Reserve's balance sheet, the Treasury General Account, and reverse repo operations, has climbed to approximately $5.92 trillion, up more than 3% over the past 12 weeks. Analysts tracking the metric place the current reading in the 80th percentile of every weekly observation since 2003. The reverse repo facility has nearly emptied, with overnight volumes falling to a few hundred million dollars in recent operations, down from a $2.37 trillion peak in September 2022.
Bureau of Labor Statistics Schedules CPI Report for August 12
The Bureau of Labor Statistics will release its Consumer Price Index report for July on August 12. Traders have identified the print as a catalyst for bitcoin's next move, as an elevated inflation reading would pressure the Federal Reserve to maintain higher rates for a longer period.
FAQ
What caused the $465 million outflow from U.S. spot bitcoin ETFs on July 23 and July 24?
U.S. spot bitcoin ETFs posted $465 million in combined outflows on July 23 and July 24, with $225.1 million in redemptions on the first day and $240.08 million on the second. The withdrawals ended a seven-session inflow streak that had brought in nearly $1 billion over the prior week.
Why does Ethra Invest's Saeed Al-Marri say the bitcoin decline is driven by leverage liquidations?
Saeed Al-Marri stated that longs are being liquidated six times as often as shorts, indicating forced selling of bullish positions rather than a broad exit from the asset. A mid-July drawdown saw $62.63 million in long liquidations versus $10.52 million in shorts, matching the six-to-one ratio he described.
When will the Bureau of Labor Statistics release the July CPI report?
The Bureau of Labor Statistics has scheduled the Consumer Price Index report for July on August 12.
