TLDR
- The Federal Reserve’s cautious stance on rate cuts triggered $360 million in outflows from crypto investment products last week, with Bitcoin ETFs losing $946 million
- US markets led the selling with $439 million in outflows after Fed Chair Jerome Powell said a December rate cut wasn’t guaranteed
- Solana bucked the trend with $421 million in inflows, driven by newly launched US ETFs, marking its second-largest weekly inflow on record
- Bitcoin’s price drop from $112,000 to below $106,000 wiped out $1.27 billion in leveraged futures positions, with 90% being long positions
- The largest single liquidation was a $33.95 million Bitcoin position on HTX exchange, while Hyperliquid saw $374 million in total forced closures
Cryptocurrency investment products experienced major outflows last week as investors pulled back following cautious comments from Federal Reserve Chair Jerome Powell. The market saw $360 million leave crypto funds despite a rate cut on Wednesday.
Powell’s statement that a December rate cut was “not a foregone conclusion” created uncertainty in the markets. The ongoing government shutdown has also delayed economic data releases, leaving investors without key information to guide their decisions.
US markets bore the brunt of the selling pressure with $439 million in outflows. Germany and Switzerland provided some relief with modest inflows that partially offset the American exodus.
Digital asset investment products saw outflows totalling US$360m last week, as investors viewed Fed Chair Powellâs comments on potential December rate cuts as hawkish. Bitcoin ETFs bore the brunt, seeing US$946m in outflows. Solana attracted US$421m in inflows driven by new USâŚ
— Wu Blockchain (@WuBlockchain) November 3, 2025
Bitcoin exchange-traded funds led the decline with $946 million in redemptions. The selling came after crypto products had attracted $921 million the previous week when Consumer Price Index data came in lower than expected on October 24.
Price Drop Triggers Massive Liquidations
Bitcoin’s price fell sharply from $112,000 to below $106,000 on Monday. The drop triggered more than $1.27 billion in leveraged futures liquidations across crypto exchanges.
Long traders, who bet on rising prices, accounted for nearly 90% of the liquidations. Over $1.14 billion in bullish positions were automatically closed out as prices moved against them.
Short positions made up just $128 million of the total liquidations. The imbalance shows how heavily traders were positioned for continued price gains before the drop.
The single largest liquidation occurred on HTX exchange. A trader lost $33.95 million on a Bitcoin long position when prices fell below their margin requirements.
Hyperliquid led all platforms with $374 million in forced closures. Bybit recorded $250 million in liquidations, while Binance saw $315 million in positions automatically closed.
Ethereum and Solana traders also faced losses. Combined liquidations for these two assets topped $300 million as prices fell across the board.
Bitcoin’s open interest remains near $30 billion despite the liquidations. Funding rates have eased slightly but traders remain cautious ahead of the Federal Reserve’s upcoming rate decision later this week.
