The Crypto Bloodbath Continues: Over Half a Billion Drained as Bitcoin and Ethereum Face Downward Spiral
The cryptocurrency market has once again been rocked by a wave of intense sell pressure, sending both Bitcoin (BTC) and Ethereum (ETH) prices spiraling downwards. A staggering capital flight from spot Bitcoin Exchange-Traded Funds (ETFs) has been identified as a primary catalyst, igniting widespread panic and renewing fears among investors of a prolonged bearish phase.
ETF Exodus Triggers Market Plunge
Unprecedented Outflows Rock Bitcoin ETFs
The recent significant crash in Bitcoin and Ethereum prices is largely attributed to massive outflows from US Spot Bitcoin ETFs. On October 16, a staggering $536.4 million was pulled from these ETFs, marking the largest single-day net negative flow since August 1, when $812 million exited the market. Key players experiencing major withdrawals included Ark 21Shares' ARKB, which saw $275.15 million leave, and Fidelity's FBTC, with $132 million in outflows. Other prominent funds managed by Grayscale, BlackRock, Bitwise, VanEck, and Valkyrie also reported significant withdrawals.
Sustained Pressure and Price Plummet
This alarming trend of negative ETF flows extended into a third consecutive day, with an additional $366.5 million outflow recorded on October 17. The relentless selling pressure has severely impacted the market, causing Bitcoin to tumble 13.3% over the past seven days. Ethereum has fared even worse, sliding 17.8% in the last month. Currently, Bitcoin is trading just above $106,940, while Ethereum hovers around $3,870, both reflecting steep retracements from their recent highs.
Experts Foresee Deeper Decline
Bearish Sentiments and Catastrophic Forecasts
Market analysts are describing the recent events as a "Bloody Friday," with sentiments largely skewed towards further declines. Data from Polymarket, a major prediction platform, shows that 52% of participants anticipate Bitcoin dropping below $100,000 before the end of October. Adding to the grim outlook, veteran economist and staunch Bitcoin critic Peter Schiff has warned of potentially "catastrophic" months ahead for the industry, predicting widespread bankruptcies, defaults, and layoffs as Bitcoin and Ethereum face another significant leg down.
Technical Weakness Signals Further Crash
Technical analysis reinforces the bearish sentiment, particularly for Ethereum. Crypto analyst Jana points to Ethereum having broken key weekly support levels and exhibiting a clear bearish setup on the charts, indicating substantial room for a continued crash. Another analyst, Marzell, echoes these concerns, identifying a "crash zone" for Ethereum. However, Marzell also notes a potential short-term demand area between $3,690 and $3,750, suggesting a possible temporary rebound before further downward movement in the fragile market.
