The cryptocurrency market has been hit by a new wave of busy selling as both Bitcoin and Ethereum prices fell sharply, which was a trigger widespread panic and uncertainty. With more than $536 million of Spot Bitcoin ETFs outflowing in a single day, the downturn has sparked renewed fears of a extended bearish phase. Analysts are calling this correction a “Bloody Friday,” a lesser but still severe reflection of last week’s brutal sell-off that wiped out billions in the market and saw BTC and ETH on a downward spiral.
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ETF Outflows Cause Bitcoin and Ethereum Price Crash
The recent crash in Bitcoin and Ethereum prices is attributed to the recent large-scale development outflows from US Spot Bitcoin ETFs. Crypto analyst Jana on social media described the event was declared one of the bloodiest weekly downturns of the quarter Bitcoin is plummeting 13.3% in seven days and Ethereum fell 17.8% in the past month. At the time of writing, Bitcoin is trading just above $106,940, while Ethereum is around $3,870, both suffering steep retracements from their recent highs.
Data from SoSoValue shows That Thursday, October 16, saw a staggering daily net outflow of $536.4 million from Spot Bitcoin ETFs, marking the largest single-day negative flow since August 1, when $812 million left the market. Out twelve US Bitcoin ETFsEight recorded large outflows, led by $275.15 million in departures Ark & 21Shares’ARKBfollowed by $132 million from Fidelity’s FBTC. Notably, funds managed by other major firms such as Grayscale, BlackRock, Bitwise, VanEck and Valkyrie also reported significant withdrawals.
These sustained outflows have now reached the third day in a row, with October 17, just a day ago, recording a massive outflow of $366.5 million. The persistent negative ETF flows underline declining investor confidence and suggest the broader market decline could continue in the near term. Combined with the $19 billion liquidation event Last Friday, increased ETF outflows could increase selling pressure in the already fragile market.
Experts warn of deeper market pain ahead
Many experts believe that the crypto market can still do that more room for a decline. 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 has done just that warned that the coming months could be catastrophic for the sector, with widespread bankruptcies, defaults and layoffs predicted as Bitcoin and Ethereum face another major backlog.
Meanwhile, technical analysts point to signs of deeper weakness in Ethereum’s structure. According to Crypto Damus, Ethereum has broken the key weekly support and is showing a bearish setup on the charts. He say that MACD is about to “go red,” leaving a significant amount of room for a crash.
Other analysts like Marzell have done the same echoed similar concerns, stating that Ethereum is now approaching a ‘crash zone’. However, he also highlighted the $3,690 – $3,750 range as a potential near-term demand area where buyers could intervene again and trigger the next move higher.
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Featured image from Unsplash, chart from TradingView