Bitcoin has fallen roughly 30% from January 13. Wave Digital Assets’ Les Borsai explains that ETF outflows and leveraged trades may have accelerated the downturn, intensifying selling pressure in a tighter liquidity environment. The analysis highlights how funding flows can influence crypto prices beyond underlying fundamentals. Borsai notes that shifts in asset flows and margin dynamics can amplify price moves when market liquidity is thin.
These factors can push prices lower even in the absence of new negative news, underscoring the role of macro funding conditions in crypto volatility. Traders will be watching ETF activity and the unwinding of leveraged positions to gauge whether the slide has run its course or if further weakness lies ahead. Until funding flows stabilise, the market may remain vulnerable to sudden moves.
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