In its latest crypto market update report shared on Wednesday, crypto trading solutions provider Talos noted that although Bitcoin (BTC) and Ether (ETH) leveraged has pulled back sharply from Q2 2026 levels, the order-book liquidity has thinned out as well, which may adversely impact the market’s ability to absorb large sell-orders.
Crypto market deleveraged, but still susceptible
The 370th edition of the State of the Network report notes that both BTC and ETH open interest declined significantly following $8.35 billion in long liquidations. At the same time, spot crypto exchange-traded funds (ETF) outflows and smaller institutional purchases of BTC are weighing on digital assets.
The fall in open interest has arguably left the crypto market more stable as it enters Q3 2026. That said, reduced order-book depth on exchanges like Binance and Coinbase could still lead to high volatility in the market, due to less trading activity.
As of Wednesday, Bitcoin is trading slightly below the $59,000 price level, while Ether is exchanging hands at around $1,575. Bitcoin open interest has fallen 32 percent from its Q2 2026 peak of around $33.5 billion. Similarly, ETH open interest has plunged to $16.2 billion, representing a 40 percent pullback.
Talos added that BTC’s 2 percent order-book depth – the value of buy and sell orders close to its market price – crashed from around $70 million in early May to between $35 and $40 million by late June. Spot exchange volumes also fell on a quarter-over-quarter basis to roughly $2.32 trillion.
In addition, there has also been a noticeable fall in stablecoin supply in the market. Despite the transient dip in stablecoin supply in the market, a May 4 report by Chainalysis posited that stablecoin volumes are on track to hit $719 trillion by 2035.
Bitcoin, ether ETF outflows not stopping
As mentioned in the report, consistent spot ETF outflows are showing a fragile institutional stance toward digital assets. Data from SoSoValue corroborates this.
According to the following table, spot BTC ETFs have now seen 8 consecutive weeks of net outflows. Over the duration, more than $8 billion worth of funds have exited these financial products.
In the same way, spot ETH ETFs have been taking a beating as well. Data from SoSoValue shows 9 days of continuous net outflows, roughly to the tune of $340 million.
In the interim, the largest corporate holder of BTC, Strategy, has suggested that it won’t shy away from selling some of its holdings. Strategy’s weak Bitcoin purchases show in its recent BTC purchases – buying only 3,600 BTC in June compared to around 50,000 BTC in April.
