The cryptocurrency market has been hit by another wave sales pressure as Bitcoin and Ethereum prices plummeted, prompting a backlash widespread panic and uncertainty. With over $536 million in outflows in Spot Bitcoin ETFs in a single day, the economic downturn has sparked renewed fears of extended bear phase. Analysts are calling this correction “Bloody Friday,” a lesser but still severe reflection of last week’s brutal sell-off that wiped billions from the market and sent BTC and ETH plummeting.
ETF outflows are causing Bitcoin and Ethereum prices to crash
The recent price crash of Bitcoin and Ethereum is attributed to recent large-scale changes outflows from US Spot Bitcoin ETFs. Cryptocurrency analyst Jana on social media X described the event was considered one of the deadliest weekly downturns of the quarter Bitcoin decline 13.3% in seven days, and Ethereum is down 17.8% over the past month. At press time, Bitcoin is trading just above $106,940, while Ethereum is trading around $3,870, both of which have seen edged corrections from recent highs.
Data from SoSoValue can be seen this Thursday, October 16, saw a staggering daily net outflow from Spot Bitcoin ETFs of $536.4 million, marking the largest single-day negative flow since August 1, when $812 million left the market. WITH twelve US Bitcoin ETFseight gigantic outflows were recorded, the main one being the departure of $275.15 million Arka and 21Shares ARKBfollowed by $132 million from FBTC Fidelity. It’s worth noting that funds managed by other major firms such as Grayscale, BlackRock, Bitwise, VanEck and Valkyrie also saw significant payouts.
These continuous outflows have continued for the third day in a row – just one day ago on October 17, it recorded a massive outflow of $366.5 million. The continued negative ETF flows highlight weakening investor confidence and suggest that the broader market deterioration may continue in the near future. Combined with $19 billion liquidation last Friday, increased outflows from ETFs could put more selling pressure on an already sensitive market.
Experts warn of bigger market problems
Many experts believe that the cryptocurrency market may still have more room for declines. Data from Polymarket, one of the world’s largest forecasting platforms, show that 52% of participants expect Bitcoin to fall below $100,000 before the end of October. Veteran economist and Bitcoin critic Peter Schiff did this as well warned that the coming months could be disastrous for the industry, predicting widespread bankruptcies, insolvencies and layoffs as Bitcoin and Ethereum face another major collapse.
Meanwhile, technical analysts point to signs a deeper weakness in Ethereum’s structure. According to Crypto Damus, Ethereum has broken key weekly support and is showing a bearish setup on the charts. He says that the MACD will soon “cross into the red,” leaving significant room for a crash.
Other analysts like Marzell do this it happened again similar concerns, stating that Ethereum is currently approaching a “failure zone.” However, he also highlighted the $3,690-$3,750 range as a possible near-term demand area where buyers could re-enter and trigger another rally.
Featured image from Unsplash, chart from TradingView
