Bitcoin Price Slides Below $105K Amid $186M ETF Outflows

The Bitcoin worth prolonged its decline on Tuesday, plunging beneath $103,700, its lowest degree since June, because the crypto market confronted one of many largest liquidation waves in weeks.

Data from Coinglass confirmed that greater than $1.27 billion in leveraged positions had been worn out in 24 hours, with lengthy merchants accounting for practically 90% of the losses. The slide follows Bitcoin’s break beneath its 200-day shifting common close to $109,800, a essential assist zone that had held agency for 4 months.

The Bitcoin worth drop triggered widespread panic, pushing the Crypto Fear & Greed Index to 21, signaling “excessive worry.” Altcoins mirrored the weak point, with Ethereum (ETH) dropping 6% to $3,500, Solana (SOL) sliding 10% beneath $160, and XRP shedding 5.5%.

Market analysts attributed the downturn to renewed uncertainty over Federal Reserve coverage. Chair Jerome Powell’s remarks final week tempered expectations of a December fee reduce, sending Treasury yields greater and weakening investor urge for food for threat belongings like Bitcoin.

ETF Outflows and Whale Selling Amplify Pressure

Further fueling the downturn, Bitcoin ETFs noticed important redemptions, totaling $186.5 million on Monday, the most important single-day outflow since early 2024.

According to Farside Investors, BlackRock’s iShares Bitcoin Trust (IBIT) was solely accountable for the drawdown, whereas different main ETFs like Fidelity’s FBTC and ARK 21Shares’ ARKB remained impartial.

The sharp ETF withdrawals coincided with an intensification of whale exercise throughout exchanges. Data from Lookonchain revealed that long-term holders moved over 400,000 BTC, round 2% of the entire provide, to buying and selling platforms previously 30 days.

One early investor reportedly transferred 13,000 BTC ($1.4 billion) since October, whereas one other whale deposited over 3,200 BTC to Kraken. Analysts recommend that these strikes sign mounting profit-taking and a weakening of conviction amongst long-term holders.

Despite rising self-custody exercise on Binance, on-chain knowledge from CryptoQuant indicated that dip-buying momentum stays fragile, suggesting accumulation might not but be sturdy sufficient to reverse the pattern.

Bitcoin Price Support at $100K in Focus as Sentiment Turns Bearish

With the Bitcoin price now hovering beneath key technical ranges, analysts warn {that a} retest of the $100,000 psychological threshold is probably going. Breaking this degree may expose BTC to deeper losses, probably reaching $77,000, aligning with the 61.8% Fibonacci retracement zone and the April 2025 lows.

Still, some strategists preserve that the long-term bull pattern stays intact. “Each correction since 2023 has been adopted by renewed accumulation close to the 50-week shifting common,” mentioned Joel Kruger of LMAX. “The present pullback could also be painful, nevertheless it’s in line with Bitcoin’s cyclical construction.”

As market worry intensifies and ETF flows stay destructive, the Bitcoin worth’s skill to defend the $100K degree may decide whether or not the following section is a brief correction or the beginning of a deeper retracement.

Cover picture from ChatGPT, BTCUSD chart from Tradingview