Key Takeaways
What has happened after the liquidations on Monday?
After a $1.7 billion liquidation across crypto on the 22nd of September, the Open Interest dropped, and spot BTC ETFs and Binance stablecoins noted outflows.
What were the clues that the selling was not capitulation, but measured?
The long-term holder selling was steady in recent weeks and not just driven by this week’s drop, showing a market correction rather than capitulation.
On the 24th of September, Binance recorded its first major outflow of stablecoins in three months. In a single day, $913 million flowed out, observed analyst Amr Taha in a post on CryptoQuant Insights.
BTC spot exchange-traded funds (ETF) flows were negative, with a $253 million outflow on the 25th of September. What is the overall effect on Bitcoin [BTC] and the rest of the market?
This reduced the spot-buying liquidity on the platform and also signaled weakened buying power on Binance. The trend had been positive for stablecoin flows in recent weeks, so a break in this trend pointed to big players shifting their positions.
The Binance net taker volume increased to +$364 million. This signaled a rise in retail participation. However, the Open Interest (OI) on the exchange fell by nearly $500 million.
CoinGlass data showed a $3.35 billion drop in OI across exchanges on Friday, the 26th of September.
