Bitcoin Forced Selling Fuel Depleted as Daily Settlements Drop Below $400M

Bitfinex analyst notes derivative liquidations cleared post-June sell-off. Daily settlements remain low, signaling minimal forced selling pressure. Market awaits ETF inflow signals amid Fed uncertainty.

Woofun AI reports that a Bitfinex analyst stated derivative traders were largely liquidated during the late June Bitcoin sell-off. Since Bitcoin breached $58,000 on July 1st, average daily settlement amounts have stayed below the typical $400 to $500 million range, indicating minimal forced selling pressure despite macro impacts. The analyst noted that the "fuel" for forced selling has been depleted, resulting in a smaller decline compared to leveraged stock themes.

The analyst expects investors to maintain defensive positions ahead of next week's U.S. jobs report. Rather than fearing further liquidations, the focus shifts to whether spot Bitcoin ETF inflows will resume once the Fed's path becomes clearer. Positions are likely to remain cautious as long as rate hike risks persist, with traders awaiting signals of active or price-insensitive institutional buying.