ETF capital outflows and options expiration pressure... Bitcoin shifts from decline to rebound, market plunges into 'extreme panic'

Source: TokenPost Original Title: ETF Capital Outflows and Options Expiry Pressure… Bitcoin($BTC) Turns Down, Market ‘Extreme Fear’ Original Link:

Market Overview

On the day after Christmas, Friday, the overall cryptocurrency market showed a calm decline. Bitcoin(BTC) briefly broke through $89,000 but then fell back below $87,000. Ethereum(ETH) failed to recover to $3,000. The total cryptocurrency market cap decreased by 1.4% to $3.01 trillion.

Light Trading Volume Holiday Market… Bitcoin Down 1%

Bitcoin has fallen about 1% in 24 hours, with a weekly decline also around 1%. Ethereum dropped 0.99% compared to the previous day, with a weekly decline of 1.7%. Market participants are taking profits and observing, leading to decreased price volatility.

Among mainstream altcoins, Dogecoin(DOGE) experienced the largest decline, down 3.3%. Meanwhile, ENA and WLFI rose approximately 4.4%, becoming the few gainers.

Extreme Fear Continues… Leverage Liquidations and Derivative Positions Changes

Singapore-based analysis firm Matrixport pointed out: “Since mid-October, Bitcoin has been under continuous downward pressure, and market leverage is gradually being released. Especially as Bitcoin options expire on a historically large scale, there are noticeable changes in derivative positions.”

The firm stated that “a delicate balance has formed between fatigue from declines and upward expectations.” In fact, the cryptocurrency Fear & Greed Index remains in the ‘Extreme Fear’ zone, with investor sentiment generally in a highly contracted state.

ETF Capital Outflows and Liquidity Restrictions

In the context of the US market being closed, spot Bitcoin ETF outflows on the 24th( totaled approximately $175.3 million, marking five consecutive days of net outflows. The spot Ethereum ETF also saw outflows of $52.7 million on the same day, with total net assets shrinking to $17.8 billion.

This reflects ongoing end-of-year cautiousness and stagnation in institutional fund inflows.

Low Liquidation Volume but Significant Long Position Losses

According to Coinglass data, total liquidations over the past 24 hours amounted to about $259 million, a relatively low level. However, long positions lost $152 million, indicating significant losses for bullish investors. Bitcoin liquidations totaled $117 million, Ethereum about $44 million. Solana)SOL( also experienced liquidations of $17 million.

Geopolitical Considerations in Macro Variables

Bank of Japan Governor Ueda Kazuo stated: “Japan’s inflation is slowly approaching the 2% target, and there is still room for rate hikes.” This comment could influence the global liquidity environment and has attracted attention among cryptocurrency investors.

Geopolitical issues have also surfaced. Ukrainian President Zelensky announced he will meet with President Trump in Florida, USA, on the 28th)Sunday(, to discuss a potential end to the Russia-Ukraine war.