The cryptocurrency market is experiencing a significant sell-off, with Bitcoin and Ethereum prices dropping sharply, leading to a surge of panic and uncertainty among investors. In a striking turn of events, the market witnessed over $536 million in Spot Bitcoin ETF outflows within just one day, reigniting concerns about a prolonged bearish trend. Analysts are dubbing this correction a “Bloody Friday,” a somewhat less severe yet still significant reflection of last week’s brutal selloff that erased billions from the market and caused BTC and ETH to spiral downwards. The recent downturn in Bitcoin and Ethereum prices is linked to significant large-scale outflows from US Spot Bitcoin ETFs. Jana on social media characterized the event as one of the most severe weekly downturns of the quarter, noting that Bitcoin plummeted 13.3% in just seven days, while Ethereum fell by 17.8% over the past month. At press time, Bitcoin is trading just above $106,940, while Ethereum hovers around $3,870, with both experiencing significant pullbacks from their recent peaks.
According to data, Thursday, October 16, experienced a remarkable $536.4 million in daily net outflows from Spot Bitcoin ETFs, representing the largest single-day negative flow since August 1, when $812 million left the market. In a striking development, out of twelve Bitcoin ETFs in the US, eight experienced significant outflows. Leading the pack was Ark & 21Shares’ ARKB, which saw a staggering $275.15 million exit, closely followed by Fidelity’s FBTC, with $132 million in outflows. Interestingly, funds overseen by prominent firms such as Grayscale, BlackRock, Bitwise, VanEck, and Valkyrie also experienced considerable withdrawals. The ongoing outflows have now extended into a third consecutive day, with October 17 marking a significant outflow of $366.5 million just yesterday. The ongoing negative ETF flows highlight a decline in investor confidence, indicating that the broader market downturn may persist in the near future.
In light of the $19 billion liquidation event that occurred last Friday, the uptick in ETF outflows may exacerbate selling pressure on an already delicate market. Numerous experts are suggesting that the crypto market could potentially experience further declines. According to data, a leading prediction platform, 52% of participants anticipate that Bitcoin will fall below $100,000 by the end of October. Peter Schiff has issued a stark warning about the upcoming months, predicting that the industry could face catastrophic consequences, including widespread bankruptcies, defaults, and layoffs as Bitcoin and Ethereum are poised for another significant downturn.
Meanwhile, technical analysts are highlighting indications of a more profound weakness in Ethereum’s framework. Reports says that Ethereum has breached significant weekly support, revealing a bearish configuration. He states that MACD is on the verge of “crossing red,” indicating a considerable potential for a crash. Other analysts, including Marzell, have voiced comparable worries, indicating that Ethereum is approaching a “crash zone.” He also pointed out the $3,690 – $3,750 range as a potential short-term demand zone where buyers might re-enter the market and initiate the next upward movement.