Crypto enters Q3 with thinner liquidity after $8.35 billion in Q2 long liquidations

The crypto market enters Q3 2025 with significantly reduced liquidity and leverage following a Q2 reset. Bitcoin and Ether open interest fell sharply after $8.35 billion in long liquidations. ETF outflows, weaker purchases by Strategy (formerly MicroStrategy) and declining market depth are all limiting the conditions for a sustained price recovery, according to data provider Talos.