Measured $1.7B Bitcoin Liquidations Spark Further Correction

Published: 2025-09-26 13:14:23 |

Bitcoin liquidations on September 22 initiated a measured correction. The sell-off saw $1.7B in forced exits and cut open interest by $3.35B by September 26. Binance recorded a $913M stablecoin outflow, the largest in three months. Spot Bitcoin ETFs logged $253M in outflows, draining spot-buying liquidity. Key on-chain metrics signal selective selling rather than panic. The estimated leverage ratio stayed stable, showing speculator deleveraging. Long-term holder SOPR held at 1.57, above breakeven, indicating profit-taking. Coinbase Premium remained positive, confirming sustained U.S. demand. Traders should monitor open interest trends, stablecoin flows, ETF inflows and outflows, leverage ratio swings, LTH-SOPR movements, and Coinbase Premium. These indicators will reveal if selling is over or if a deeper correction to $105,000–$107,000 may materialize. Bitcoin liquidations have driven this pullback, but the lack of broad capitulation suggests the drop may offer buying opportunities rather than a full market reversal.

Bearish

The classification as bearish stems from the $1.7B in Bitcoin liquidations and a subsequent $3.35B decline in open interest, which reduced market leverage and spot-buying liquidity. Significant stablecoin outflows on Binance and spot ETF outflows reflect profit-taking and reduced institutional demand. Although on-chain metrics—such as stable leverage ratios, LTH-SOPR above breakeven, and a positive Coinbase Premium—indicate a measured correction rather than panic, the immediate effect is a pullback in price momentum. Historically, similar deleveraging events in 2021 and 2023 led to short-term price dips before consolidation. Traders may face further downside toward the $105,000–$107,000 zone if open interest continues to contract. In the long term, selective selling and healthy on-chain metrics support a neutral to bullish outlook, but near-term trading conditions are likely to remain cautious and tilted bearish until fresh buying pressure emerges.