$536M In Sell Pressure: Why Bitcoin And Ethereum Prices Crashed
The cryptocurrency market has been hit with another wave of as both the Bitcoin and Ethereum prices plunged sharply, triggering . With over $536 million in Spot Bitcoin ETF outflows in a single day, the downturn has sparked renewed fears of an . Analysts are calling this correction a “Bloody Friday,” a less but still severe reflection of last week’s brutal selloff that wiped billions in the market and saw BTC and ETH spiraling downwards.
ETF Outflows Trigger Bitcoin And Ethereum Price Crash
The recent crash in Bitcoin and Ethereum prices is being attributed to recent large-scale . Crypto analyst Jana on X social media the event as one of the bloodiest weekly downturns of the quarter, with 13.3% in seven days and Ethereum sliding 17.8% over the past month. At press time, Bitcoin is trading slightly above $106,940 while Ethereum sits around $3,870, both suffering steep retracements from their recent highs.
Data from SoSoValue that Thursday, October 16, saw a staggering $536.4 million in daily net outflows from Spot Bitcoin ETFs, marking the largest single-day negative flow since August 1, when $812 million exited the market. Out of , eight registered major outflows, led by $275.15 million leaving , followed by $132 million from Fidelity’s FBTC. Notably, funds managed by other major companies like Grayscale, BlackRock, Bitwise, VanEck, and Valkyrie also reported significant withdrawals.
These persistent outflows have now stretched into their third consecutive day, with October 17, just a day ago, recording a massive outflow of $366.5 million. The underscore waning investor confidence and suggest that the broader market downturn could continue in the near term. Combined with the last Friday, increased outflows in ETFs could put more selling pressure on the already fragile market.
Experts Warn Of Deeper Market Pain Ahead
Many experts believe that the crypto market may still have . Data from Polymarket, one of the world’s largest prediction platforms, that 52% of participants expect Bitcoin to drop below $100,000 before the end of October. Veteran economist and Bitcoin critic Peter Schiff has also that the coming months could be catastrophic for the industry, predicting widespread bankruptcies, defaults, and layoffs as Bitcoin and Ethereum face another major leg down.
Meanwhile, technical analysts are pointing to signs of . According to Crypto Damus, Ethereum has broken key weekly support and is displaying a bearish setup on the charts. He that MACD is about to “cross red,” leaving a significant amount of room for a crash.
Other analysts like Marzell have similar concerns, stating that Ethereum is now nearing a “crash zone.” However, he also highlighted the $3,690 – $3,750 range as a possible short-term demand area where buyers could step in again and trigger the next leg up.
Featured image from Unsplash, chart from TradingView
