Bitcoin Sinks Under $100K as $897M ETF Outflows Stir Fed Rate Fears

Bitcoin dropped beneath $100,000 on Friday. It's the third straight week of losses. This was just the latest in a series of downturns...

Quick overview

  • Bitcoin fell below $100,000 for the third consecutive week amid a broader decline in risk assets.
  • Investor sentiment is dampened by uncertainty over the US economy and a recent government shutdown.
  • Institutional interest in Bitcoin is waning, with significant redemptions from US-listed spot Bitcoin ETFs.
  • The entire crypto market is experiencing losses, with major altcoins following Bitcoin's downward trend.

Bitcoin dropped beneath $100,000 on Friday. It’s the third straight week of losses. This was just the latest in a series of downturns as the price continued to fall. To add to the Fed’s uncertainty, risk assets generally declined as hopes of a December rate cut dwindled.

Investor sentiment has taken a hit from a looming cloud of uncertainty over the US economy, which is only getting worse & even worse-er following a 43-day government shutdown. The fear is that key employment & inflation numbers for October may never get released – that’d mean the Fed is going to the meeting on December 10-11 without the data it needs.

CME FedWatch numbers say the chances of a 25-basis-point rate cut just dropped to 45.4% – down from 63.8% last week. And as traders become increasingly risk-averse, it’s no wonder they’re staying away from things like cryptocurrencies.

Institutional Demand is Taking a Hit

Bitcoin’s latest slide has also been driven by institutional investors losing interest. The US-listed spot Bitcoin ETFs have had a crush of redemptions, with SoSoValue reportedly dumping $897 million on Thursday alone. That’s the third week in a row they’ve had net outflows, which is basically a sign that corporate and institutional investors are growing less interested.

Key points:

  • Bitcoin has lost over 4% this week.
  • So did $897 million from spot ETFs on Thursday.
  • Since October, the trading ranges have been super tight, and that’s got to be cooling down investor enthusiasm.
  • With no fresh buyers, Bitcoin has been stuck in tight trading ranges, and it’s not hard to see that it’s a sign of people losing faith in the old reliable, gold.

Altcoins Follow Bitcoin’s Lead

The rest of the crypto market followed Bitcoin’s lead down into the cellar, with most of the major altcoins posting weekly losses:

  • Ethereum (ETH): -9.3%, trading at $3,161.68
  • BNB: -5.4%, down ~7% weekly
  • XRP: -8% weekly decline
  • Solana & Cardano: 8.5–9% losses
  • Meme coins (Dogecoin, $TRUMP): >7% slide

Same story – investor caution is gripping the whole market. The very fact that people are no longer buying up all the assets is keeping the market down, and till there is new buying or some good news, the crypto markets are just going to continue to struggle.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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