Bitcoin Rebounds Near $81,700 as ETF Outflows Reach $635M
Bitcoin recovered to around $81,700 on Friday, gaining about 0.5% since midnight UTC after a tech-led market selloff. The rebound followed roughly $635 million in net outflows from US spot Bitcoin ETFs on Thursday, ending a three-day streak that had brought in more than $1 billion. Bitcoin ETF flows are now a key short-term gauge of institutional demand: renewed withdrawals could weigh on sentiment, while fresh inflows may support the recovery.
Risk appetite remains fragile. The Nasdaq fell 2.6% on Thursday, its steepest daily decline since June, while Brent crude traded near $113 a barrel. Higher oil prices could keep inflation elevated and limit the scope for interest-rate cuts. Markets broadly expect the Federal Reserve to hold rates at 3.75%–4.0% at its October 27–28 meeting, but December policy remains uncertain. Traders will watch the Fed’s statement and press conference for clues on rates, alongside ETF flows and broader market conditions.
Bearish
The near-term signals lean bearish for Bitcoin, although the price rebound shows that selling pressure has not yet turned into a sustained decline. The most direct concern is the roughly $635 million in spot Bitcoin ETF outflows, which abruptly reversed three sessions of more than $1 billion in combined inflows. If withdrawals continue, traders may interpret them as weaker institutional demand and reduce exposure, particularly while technology shares and other risk assets are under pressure.
The wider macro backdrop adds uncertainty. A 2.6% Nasdaq decline highlights fragile risk appetite, while Brent crude near $113 a barrel could reinforce inflation concerns and keep borrowing costs elevated. The expected Fed rate hold may already be reflected in prices, but uncertainty about December policy and long-term yields could limit demand for non-yielding assets such as Bitcoin. Similar periods of ETF outflows and equity-market weakness have often amplified short-term volatility, though they do not by themselves determine a lasting trend.
For the short term, traders are likely to watch whether Bitcoin holds near the mid-$81,000 range, whether ETF flows return to positive territory, and how markets react to the Fed’s guidance. Continued outflows or a further risk-off move could renew downside pressure; renewed inflows and calmer rate expectations could support the rebound. Longer term, the article does not establish a change in Bitcoin’s fundamentals. The market direction will depend on whether institutional demand recovers and whether inflation and interest-rate concerns ease.