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BTC & ETH FRIDAY’S SELLOFF WAS MORE THAN A NORMAL PULLBACK Friday exposed how quickly crypto can change when macro pressure, leverage and stretched technicals collide. Bitcoin fell from above $81K to around $76.9K, while Ethereum lost the $2.5K level and reached roughly $2.45K. At first glance, it looks like a simple rejection. But the capital-flow data tells a more complicated story. BTC ETF DEMAND IS STILL PRESENT U.S. spot Bitcoin ETFs recorded a net inflow of roughly 497 BTC, worth about $32M, despite the sharp market decline. BlackRock was the largest buyer, adding around 1,400 BTC, while Fidelity and ARK 21Shares were sellers. More importantly, Bitcoin ETFs had accumulated more than $2.6B over the previous eight trading sessions. So Friday's selloff wasn't necessarily caused by institutions abandoning Bitcoin. The bigger issue was that new demand had to absorb a sudden wave of leveraged selling. ETH LOOKED MORE VULNERABLE Ethereum's ETF flows were much weaker. ETH ETFs recorded approximately 9,825 ETH of net outflows, worth around $18.7M. Grayscale accounted for most of the selling, while other institutions were still buying. ETH also broke below the important $2.5K area and fell toward $2.45K. That makes the next reaction particularly important. If buyers reclaim $2.5K, Friday could eventually look like a normal leverage reset. If ETH remains below that level, the market may need more time to rebuild momentum. THE REAL CATALYST WAS MACRO The Fed's Jackson Hole message changed the short-term liquidity narrative. With inflation still above the Fed's target, markets became less confident about near-term easing. The result was straightforward: Higher rate expectations → stronger dollar and yields → weaker risk appetite → pressure on crypto. Then leverage amplified everything. More than $200M in BTC longs were reportedly liquidated within roughly an hour, while total crypto liquidations reached around $369M. That's how a macro repricing can quickly become a much larger crypto selloff.