Crypto Enters Q3 2026 With Less Leverage but Thinner Liquidity After Q2 Reset

Crypto markets began the third quarter in a structurally cleaner but more fragile state, according to institutional data provider Talos. Bitcoin and Ether long liquidations totaled $8.35 billion during Q2, removing significant speculative leverage from the market. Bitcoin open interest dropped 32% from its quarterly peak to $33.5 billion, while Ether open interest fell 40% to $16.2 billion.

Liquidity Has Thinned Considerably

Bitcoin’s 2% order-book depth fell from roughly $70 million in early May to between $35 and $40 million by late June. Spot exchange volume dropped 28% quarter-over-quarter to $2.32 trillion, meaning large orders now face less cushion and could trigger sharper price swings.

ETF Outflows and Strategy Slowdown Hit Demand

US spot Bitcoin ETFs recorded approximately $4.5 billion in June outflows alone, pushing year-to-date totals to $5.5 billion. Strategy’s monthly Bitcoin purchases also slowed sharply, falling from over 50,000 BTC in April to roughly 3,600 BTC in June, ending the quarter holding 847,363 BTC at an average cost of $64,103.