Bitfinex: The "fuel" for forced Bitcoin sell-offs has been exhausted, and attention should be paid to signals of ETF fund inflows

According to CoinDesk, Bitfinex analysts released a report stating that derivative traders have largely been washed out during the Bitcoin sell-off at the end of June.

Bitcoin fell below $58,000 on July 1, and since then, the average daily liquidation amount has remained well below this year's typical range of $400 million to $500 million, indicating that despite macro shocks, there is little forced selling pressure. The decline in the Bitcoin market is smaller than that of leveraged stock themes because the "fuel" for forced selling has been exhausted.

Bitfinex analysts expect that investors will remain defensive ahead of next week's U.S. employment report (the next major macro catalyst after the Federal Reserve meeting).

They believe that rather than worrying about a new round of forced liquidations, the more critical question is whether the inflow of spot Bitcoin ETF funds can return once the market has a clearer judgment on the Federal Reserve's path.

The analysts wrote, "We believe that positions will remain defensive as long as the risk of Federal Reserve interest rate hikes persists. Whether institutional buyers are active or insensitive to prices is the signal that traders have yet to see."