Bitcoin briefly slipped below $78,000 on Wednesday, triggering a broad liquidation sweep that erased more than $300 million in leveraged positions before the price recovered above $79,000. The 24-hour tally came to roughly 80,000 liquidated accounts, with long traders shouldering most of the pain — about $270 million of the total.
Longs caught off guard
Bitcoin longs lost around $109 million alone, while Ethereum longs gave up roughly $70 million. XRP and Zcash long liquidations hit about $16 million and $11 million respectively. The largest single wipeout was an $11.91 million Bitcoin position on Binance. The pullback hit alts broadly: XRP fell 4% to $1.43, Solana slid 3% to $97, Ethereum dropped to about $2,467, and Zcash declined 7% to $789. Cardano and Dogecoin each lost roughly 5%, with ADA hovering around $0.20.
Signs of a squeeze building
Market maker Wintermute turned constructive after ETF flows stabilized and Bitcoin held its range floor, but the firm warned that the speed of the positioning shift resembles squeeze behavior. That caution is shared elsewhere. Alphractal CEO Joao Wedon said the probability of another Bitcoin long squeeze was rising as long positions become more concentrated and funding rates stay positive across several exchanges.
ETF inflows steady the ship
US spot Bitcoin ETFs attracted more than $2.5 billion across a seven-session inflow streak, helping Bitcoin climb from roughly $62,000 to above $80,000. Wintermute says those flows now carry the burden of confirming the advance has a durable spot-market foundation. The firm would turn cautious if ETFs record a negative weekly flow while Bitcoin closes back inside its former range below $67,000.
CryptoQuant data showed spot and futures demand rising together, with total Bitcoin demand increasing by about 170,000 BTC over the past 30 days. Glassnode found that monthly capital flows have returned to positive territory, and flagged Bitcoin's short-term holder cost basis near $70,000 as an important support level.
Macro watch
The pullback lands ahead of a heavy macro stretch. The US Bureau of Economic Analysis will release second-quarter GDP along with July personal income and spending data, including the Fed's preferred PCE inflation gauge. Bitcoin's move lower came after a period when short traders dominated — they made up roughly 92% of liquidations during the prior advance, while crypto investment products pulled in $2.6 billion.
Where the price goes next may hinge on whether ETF inflows stay strong through the week. The $70,000 level is the line in the sand for the short-term holders, and Bitcoin has already shown it can move quickly when the market's crowded.
