Bitcoin Crashes Below $95K as $870 Million Flees ETFs in One Day
This article first appeared on GuruFocus.
Bitcoin's (BTC-USD) latest tumble is hitting the market like a cold wave. After spending months trading with an almost unstoppable aura, the world's largest cryptocurrency slipped below $95,000 for the first time in roughly half a year, dropping as much as 4.3% to $94,508. Investors pulled about $870 million from Bitcoin ETFs in a single session, marking the second-largest daily outflow since their debut. The move comes on the heels of October's $19 billion liquidation shock that wiped more than $1 trillion off total crypto market value, with another $1 billion in leveraged bets erased in just the past 24 hours. For traders who watched Bitcoin peak at $126,251 in early October before ending 2024 at $93,714, this downturn could be signaling a market that is still trying to regain its footing.
What makes this moment even more striking is how tightly Bitcoin now moves with the broader macro mood. A short-lived rebound in US equities earlier this weeksparked by relief over the end of the government shutdownquickly faded as delayed economic data left traders wondering whether the Federal Reserve could justify near-term rate cuts. That hesitation is bleeding into risk assets, and crypto, with its higher volatility, is feeling it even more. Liquidity has thinned sharply, with market depth down roughly 30% from this year's peak, making every large order more destabilizing. Some strategists argue that Bitcoin's sensitivity to macro risks could remain elevated until institutional participation stretches meaningfully beyond Bitcoin and Ether.
With Bitcoin now negative since President Trump's inauguration and technical support thinning into the low-$90,000 range, sentiment may stay cautious for a while. ETF investors are positioning defensively, options desks are seeing stronger demand for volatility-leaning structures like strangles and straddles, and traders are weighing whether this phase of deleveraging could be setting the tone for the weeks ahead. In a market where liquidity keeps shrinking and macro signals keep shifting, investors may find that crypto's next moves hinge less on narrative and more on how much pressure the system can absorb.
Content Original Link:
" target="_blank">
