ETF Outflows Continue, Bitcoin Drops Below $113K
US spot Bitcoin and Ethereum ETFs saw ETF outflows for a second day, underscoring negative market sentiment. Bitcoin fell below its short-term support at $117,000 and dropped under $113,000. Ethereum also breached the $4,200 level. Overall liquidations reached $450 million, with $368 million in long positions, and Ethereum longs suffered heaviest losses. The market has cleared excess long liquidity around $113,800 for Bitcoin and $4,165 for Ethereum. Traders now target $112,000 as critical long-term support. The upcoming Fed Chair Powell speech on Friday adds volatility risk, as ETF outflows may intensify and drive further market pullbacks.
Bearish
The sustained ETF outflows, combined with Bitcoin’s breach of its short-term support at $117K and Ethereum’s drop below $4,200, signal intensified bearish momentum. The $450M liquidation event—dominated by long positions—indicates aggressive deleveraging. Historical parallels, such as the May 2023 ETF-driven corrections, show that continued outflows ahead of major macro events, like the upcoming Fed speech, often exacerbate market pullbacks. In the short term, traders face downside risks toward Bitcoin’s $112K support. Over the long term, market stability will hinge on sentiment shifts and ETF inflows resuming, but current indicators favor a bearish outlook.