Bitcoin ETF Inflows Hit $904.6 Million in Two Days as Exchange Reserves Retreat to Pre-Hack Levels

Bitcoin held above $79,000 through the Labor Day holiday weekend, even as stronger-than-expected U.S. employment data pushed market odds of another Federal Reserve rate hike from 50% to 60%. The resilience came alongside a sharp pullback in futures leverage and a two-day surge of $904.6 million into U.S. spot Bitcoin ETFs, the largest such inflow since January.

Open interest in Bitcoin futures and perpetual contracts fell 7.5% from $57.7 billion on Sept. 3 to $53.44 billion by Sept. 7, according to market data. Funding rates also declined from roughly 0.0035% to 0.0008% over the same stretch, signaling that traders were unwinding leveraged positions ahead of Wednesday's U.S. consumer price index report.

The simultaneous decline in both metrics suggests broad deleveraging rather than a collapse in underlying demand. Spot prices slipped only about 2% while open interest contracted at a faster pace, indicating that traders were voluntarily reducing exposure rather than being forced out of positions. This dynamic could make Bitcoin less vulnerable to cascading liquidations if the inflation print surprises to the upside.

Funding rates measure periodic payments exchanged between long and short positions in perpetual futures markets. When the rate is positive, longs pay shorts, reflecting more aggressive bullish positioning. The drop toward near-zero territory means the cost of maintaining long positions has fallen sharply, easing the overheated conditions that often precede violent corrections.