Bitcoin Ethereum ETF fund outflows and DeFi leverage reduction trigger market adjustments - signals of market structure restructuring emerge

Source: TokenPost Original Title: Bitcoin and Ethereum, adjustment accompanied by ETF fund outflow and reduction of DeFi leverage… signals of market structure reorganization. Original Link: https://www.tokenpost.kr/news/cryptocurrency/309742 The Bitcoin and Ethereum markets are undergoing adjustments due to a decline in ETF demand and a reduction in leverage in the DeFi sector. While this phenomenon is a short-term weak factor, it could become an opportunity for improving the market structure in the medium to long term.

According to the latest data from CoinMetrics, since mid-October, Bitcoin spot ETFs have seen a total outflow of $4.9 billion (approximately 7.2 trillion won), marking the largest capital outflow since April 2025. At the same time, the premium of Digital Asset Trust (DAT) products is also converging towards their Net Asset Value (NAV), which limits the space for capital inflow and the expansion of Bitcoin holdings.

A representative DAT product - a well-known company currently holds approximately 649,870 bitcoins. The average purchase price is $74,333, and due to the recent decline in stock prices, the bitcoin buying speed has slowed to the levels of 2021. This phenomenon is interpreted as a trend similar to the cooling of the U.S. bond market.

On October 10, a large-scale liquidation event occurred in the perpetual futures market, with the Open Interest dropping by more than 30% within just a few hours. This led to the funding rates moving towards neutral or slightly negative territory, and similar adjustments were seen in the DeFi lending market.

Ethereum-based lending has been severely impacted. With a certain stablecoin recently de-pegged, the loan volume of that stablecoin in a certain lending platform's V3 has decreased by 65%. Additionally, loans based on Ethereum-related assets, such as WETH and liquid staking tokens, have dropped by 35%-40%.

The spot liquidity of Bitcoin, Ethereum, and certain public chains is still at a low level. Compared to early October, the depth above the order book has decreased by 30%-40%. Market makers in the entire altcoin market are maintaining a conservative attitude, and the market recovery will take time.

CoinMetrics analysis believes that this internal reset is intertwined with the uncertainty of the macro environment. Weakened expectations of interest rate cuts, weak technology stocks, and external factors such as geopolitical risks have stimulated risk-averse sentiment, which has a braking effect on the demand for cryptocurrencies.

Against this backdrop, the price correlation between Bitcoin and gold has also weakened. Gold has risen over 50% this year, but the price increase of Bitcoin has been limited. At the same time, technology stocks related to artificial intelligence have also shown weak performance, highlighting the market characteristics of overall liquidity contraction.

The positive aspect is that the market as a whole is transitioning towards a more neutral and lower leverage structure. If factors such as the restoration of ETF inflows, expansion of DAT, increase in stablecoin supply, and recovery of liquidity in the spot market progress simultaneously, it will lay the foundation for price stability and rebound.

However, these signs of recovery have not yet emerged, and the tug-of-war between macroeconomic tensions and demand recovery is expected to continue.

Market Interpretation: The decline in institutional demand and the reduction of leverage have impacted Bitcoin's weakness, but they are beneficial for the improvement of the market's fundamentals. The stability of lower-level structures could become a positive signal in the long term.

Strategy Focus: Continuous attention is needed on the recovery of ETF and DAT demand, while changes in the scale of loans and liquidity in the DeFi market will also become important variables for short-term direction.