U.S. spot Bitcoin exchange-traded funds have seen outflows of nearly $2 billion over the past five trading days, pressuring Bitcoin to drop below $100k for the first time since May.
Summary
- Bitcoin ETFs bled nearly $2 billion over the last 5 trading days.
- Macroeconomic pressures, such as US-China trade tensions, have kept risk sentiment at bay.
- Bitcoin briefly fell below the psychological support level at $100k earlier today.
According to data from SoSoValue, the 12 spot Bitcoin ETFs recorded their fifth straight day of net outflows on Nov. 4 as investors withdrew $577.74 million from the funds. Fidelity’s FBTC led the outflows with $356.58 million leaving the fund, while ARK 20Shares’s ARKB followed with $128.07 million. The remaining Bitcoin ETFs also contributed to the negative momentum with $93 million in combined outflows. None of the spot Bitcoin ETFs saw inflows on the day.
The latest withdrawals extend the investor products’ five-day outflow streak, with more than $1.91 billion in net outflows recorded during the period.
Meanwhile, their Ethereum counterparts didn’t fare much better. Data from SoSoValue shows that nine spot Ether ETFs lost $219.37 million on Tuesday, extending a similar five-day outflow streak that has now totalled $719 million in net outflows.
The decline in demand from investors, especially from institutional ones, looks likely to be a part of a larger volatility pattern that began in October and continued into early November. Investors are likely reacting to uncertainty around another rate cut by the Federal Reserve this year, stronger U.S. labor data, and persistent inflation.
External pressures such as rising yields, a strong US dollar, and continued geopolitical friction between Washington and Beijing have also made investors cautious over stepping into crypto at least until there is greater clarity on monetary policy and global risk sentiment begins to stabilize.
At press time, the Crypto Fear and Greed Index, a closely followed metric used to gauge overall market sentiment, stood at 23, up 2 points from the previous day, but still firmly within the “Extreme Fear” territory.
The combined effect of heavy ETF outflows and strong liquidation activity over the past day led Bitcoin to fall below the $100k mark for the first time since May.
On Tuesday, Nov. 4, Bitcoin (BTC) reached a daily low of $99,076 before staging a modest rebound to around $102,000 at the time of writing. Despite the recovery, the token remains 2.6% down today and contributed to a broader sell-off across the crypto market, bringing its combined value down 2% over the day.
Ethereum (ETH), the largest altcoin by market cap, is down 5.7% over the day, trading at $3,293, while XRP (XRP), Solana (SOL), and Cardano (ADA) were down between 2-3% each.
The $100k level had served as a key psychological anchor for Bitcoin. Since dipping to $99,705 in late June, the bellwether had consistently traded above that zone, reinforcing its significance for both retail and institutional traders.
Following Bitcoin’s drop below this crucial level, the risk of additional downside remains. Traders are now eyeing the $98,000 support area, which marks both a recent low and a zone with significant trading activity.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
