Bitcoin falls below 100K as BTC and ETH ETFs report $800M outflow

Bitcoin slipping under the $100,000 mark has sparked another wave of anxiety across the crypto world. Prices dipped just as U.S.-listed Bitcoin (BTC) and Ethereum (ETH) ETFs reported a combined $800 million in outflows.

That’s not a minor number. For context, it’s one of the largest collective redemptions since ETFs for the two assets launched. The timing couldn’t be worse, fear levels in the market are already high, and this just added fuel to the fire.

Big money heads for the exit

Bitcoin ETFs led the exodus, shedding $577.7 million, while Ethereum products saw $219.4 million flow out. Fidelity’s FBTC alone accounted for more than half of the Bitcoin redemptions, around $356.6 million. BlackRock’s ETHA wasn’t spared either, losing over $111 million.

These numbers come as the Crypto Fear & Greed Index drops to 20, a range that typically signals “extreme fear.” Translation: traders are nervous, liquidity is drying up, and people are holding more stablecoins than usual.

Some analysts point to macro conditions, a stronger U.S. dollar, sticky inflation, and the Federal Reserve’s “higher for longer” tone, as key reasons why institutional money is trimming exposure. It’s not so much that faith in Bitcoin is gone, but rather that big investors are getting defensive.

What to watch next

Institutional flows:

Institutions have been the backbone of this rally since ETF approvals, so when they start pulling out, the market feels it. Watch if these outflows continue through the next couple of weeks. A pause could mean simple profit-taking; sustained redemptions might hint at a sentiment shift.

Fed policy and dollar strength:

Crypto doesn’t move in a vacuum. If the Fed keeps rates elevated or signals more tightening, risk assets could stay under pressure. On the flip side, any dovish hints, or a weaker dollar, might bring money back into Bitcoin ETFs.

Activity outside the U.S.:

ETF data from Asia and Europe will be worth watching. Hong Kong’s Bitcoin and Ether products have quietly gained traction, and fresh inflows there could help stabilize global sentiment even if U.S. funds keep bleeding.

Retail traders’ response:

Retail investors often step in during panic phases. If we start seeing more small accumulations on-chain or spikes in exchange activity, it could signal that dip-buyers are waking up.

On-chain signals:

Whale movements, miner behavior, and exchange inflows are the quiet indicators that tell the real story. So far, on-chain data hasn’t shown capitulation, but rising inflows to exchanges would be a warning sign that more selling could be coming.

You might also find this breakdown on spot vs leveraged Bitcoin ETFs useful: Spot Vs Leveraged Bitcoin ETFs: Which One Should You Bet On?

A wider ripple effect

Although the data focuses on U.S. ETFs, the impact spreads far beyond. In India, Southeast Asia, and Europe, local exchanges often mirror U.S. sentiment within hours. When Bitcoin takes a hit, everything from DeFi tokens to NFTs usually follows.

This latest slide doesn’t just hurt portfolios, it dents confidence. Many investors who entered after ETF approvals expected steady institutional growth. This week has reminded everyone that crypto, for all its progress, still moves in emotional waves.

Conclusion

Yes, Bitcoin falls below 100K, and the $800 million ETF outflow looks ugly on paper. But if you’ve been around long enough, you know this is part of the game. Bitcoin has faced far worse and bounced back every time.

What’s happening now feels more like a sentiment reset than the start of a collapse. Institutions are cautious, retail is hesitant, and fear is high, which, historically, is when long-term players quietly start building positions again.

As always in crypto, the real question isn’t “why did this happen?” but “what happens next?”

Disclaimer: 

This story is for informational purposes only and should not be taken as investment advice. Cryptocurrency markets are volatile and unpredictable. Always do your own research or speak with a qualified financial advisor before making investment decisions.

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