Bitcoin Drops Below $100K on $2B ETF Outflows, Fed Jitters
Bitcoin price dipped below the $100,000 support level for the first time in weeks, falling as low as $99,170 amid over $2 billion in net outflows from US spot Bitcoin ETFs. Major funds like BlackRock’s IBIT saw $375 million of outflows, outweighing inflows into Fidelity’s FBTC and Ark 21Shares products. Traders also faced forced deleveraging, with more than $1 billion in long liquidations, while option dealers’ short-gamma hedging amplified volatility around the $100,000 strike. On the macro front, unexpected US job cuts surged 175% year-on-year in October, and weak Fed rate-cut expectations bolstered the dollar and credit conditions. Demand from digital asset treasuries such as MicroStrategy has cooled, removing a key support factor. Bitcoin price volatility has ranged between $98,892 and $116,410 over the past two weeks. With ETFs turning into a near-term headwind and economic jitters persisting, the next leg of recovery will depend on renewed ETF inflows and easing Fed uncertainty.
Bearish
The report highlights significant bearish pressures on Bitcoin price, driven by over $2 billion in net outflows from US spot Bitcoin ETFs, forced deleveraging with more than $1 billion in long liquidations, and option dealers’ short-gamma hedging that amplified recent volatility. Macro headwinds, including a 175% surge in US job cuts and delayed Fed rate-cut expectations, have strengthened the dollar and tightened credit, further weighing on risk assets. Cooling demand from digital asset treasuries like MicroStrategy removes a key support pillar. These factors suggest elevated downside risk in the short term, with a potential stabilization only if ETF inflows resume and Fed uncertainty eases. Long-term recovery hinges on renewed institutional demand and improved risk appetite.