$BTC $ETH #Cryptocurrency #Bitcoin #Ethereum #CryptoMarket #ETFOutflows #BearMarket #Investing #Finance #MarketTrends #PriceAnalysis #CryptoAnalysis
Why Did Bitcoin and Ethereum Crash? Uncover the $536M Sell-Off Impact!
The cryptocurrency market is currently reeling from a substantial wave of sell pressure, highlighted by the recent $536m news regarding Bitcoin ETF outflows. Both Bitcoin and Ethereum experienced significant price declines, resulting in widespread panic among investors. Analysts have dubbed this downturn as “Bloody Friday,” reflecting the severity of last week’s selloff that cost the market billions.
The dramatic price drop for Bitcoin and Ethereum primarily stems from large-scale outflows from U.S. Spot Bitcoin ETFs. Crypto analyst Jana, active on social media platform X, characterized this week as one of the most challenging periods of the quarter. Over the past seven days, Bitcoin plummeted 13.3%, while Ethereum suffered a 17.8% decline in the last month. Currently, Bitcoin is trading slightly above $106,940, with Ethereum hovering around $3,870—both far from their recent peaks.
Data from SoSoValue reveals that Thursday, October 16, recorded an astonishing $536.4 million in net outflows from Spot Bitcoin ETFs. This marks the largest single-day negative flow since August 1, when $812 million exited the market. Out of twelve U.S. Bitcoin ETFs, eight registered significant withdrawals, with Ark & 21Shares’ ARKB leading the pack with $275.15 million flowing out, followed closely by Fidelity’s FBTC, which saw $132 million leave. Notably, other major players like Grayscale, BlackRock, Bitwise, VanEck, and Valkyrie also experienced substantial outflows.
These persistent outflows have continued for three consecutive days, with another significant exit of $366.5 million recorded just a day ago. Such sustained negative flows signal diminishing investor confidence, suggesting a potential continuation of the broader market downturn. Coupled with a $19 billion liquidation event last Friday, these ETF outflows could further exacerbate selling pressure on an already fragile market.
Experts Warn of Deeper Market Pain Ahead
Many financial experts remain skeptical about the current state of the crypto market, predicting more declines. Data from Polymarket shows that 52% of participants foresee Bitcoin dropping below $100,000 before October concludes. Veteran economist and Bitcoin critic Peter Schiff has voiced concerns that the upcoming months could spell disaster for the industry, anticipating widespread bankruptcies, defaults, and layoffs as Bitcoin and Ethereum brace for another downturn.
Technical analysts are also highlighting ominous signs of weakness in Ethereum’s structure. According to insights from Crypto Damus, Ethereum has breached key weekly support levels and is exhibiting a bearish setup in its technical charts. The MACD indicator is on the verge of “crossing red,” suggesting a significant potential for a crash. Analyst Marzell has echoed these sentiments, stating that Ethereum is nearing a “crash zone.” However, he identified the $3,690 to $3,750 range as a potential short-term demand area where buyers might re-enter, possibly triggering a rebound.
For further insights into the evolving landscape of cryptocurrency, feel free to explore our comprehensive crypto section. As the market remains volatile, staying informed is crucial for navigating these challenging times.
For more detailed trading insights, you can also visit Binance, a leading platform for cryptocurrency trading.
In conclusion, the current sell-off illustrates the fragility of the cryptocurrency market. With persistent outflows and bearish sentiments prevailing, investors should closely monitor developments to manage their portfolios effectively.
Comments are closed.