Bitcoin fell to a four-week low, dipping just below $110,000, as the cryptocurrency market shed $200 billion in market value.
Investors pulled $253 million from U.S. spot Bitcoin ETFs on Thursday, raising total weekly outflows to nearly $480 million.
The heavy withdrawals coincided with Bitcoin slipping below key support levels on Friday, intensifying bearish sentiment.
Market watchers note that Bitcoin’s sharp drop comes amid a broader sell-off across digital assets, fueled by concerns over macroeconomic conditions and heightened volatility. Traders are increasingly cautious as the market braces for a wave of expiries and liquidations.
The crypto bloodbath pushed the Crypto Fear and Greed Index to Extreme Fear territory. The Crypto Fear and Greed Index is now at 29, down 16 points from the previous day. This means that as the market approaches Extreme Fear territory, it has formally entered a state of fear.
Bitcoin has dropped 2.1 percent, below the $110,000 mark. BTC may be able to retest the $109,700 to $109,800 range as soon as possible if it can break through the 30-day moving average at $109,526.
The Crypto Fear and Greed Index decreased by 16 points from the day before, according to CoinGlass data, as Bitcoin maintained price moderation.
The Crypto Fear and Greed Index last entered Extreme Fear territory following a string of significant token crashes and market liquidations.
CoinGlass data shows that as Bitcoin continues its sharp decline, the Crypto Fear and Greed Index has fallen 16 points from the previous day.
The index shows that following a string of market liquidations and major token crashes, the cryptocurrency market is currently in a state of fear. The Crypto Fear and Greed Index last entered Extreme Fear territory in April 2025 and mid-February 2025, shortly after President Donald Trump’s “Liberation Day” blanket tariffs rocked the cryptocurrency market.
The cryptocurrency market valuation sank to $3.8 trillion. The mass liquidations began earlier this week, when the market dropped below $4 trillion because of several long positions being liquidated.
Hot macro data has crushed hopes for a rate cut, and traders are reevaluating risk, which has put huge pressure on the cryptocurrency market.
Bitcoin has fallen below $110,000 ahead of a $22 billion monthly options expiry amid rising volatility and $1 billion long positions liquidated.
Ethereum’s decline also accelerated, plunging below $4,000 support level.
In addition, Solana dropped below $200 support line as ETF speculation slows down, and XRP has plummeted, pulling down stocks linked to cryptocurrencies. Rapid unwinding and concentrated selling across sectors are reflected in these actions.
Traders watch whether important supports hold as crypto-based options expire.
Traders watch whether important supports hold as crypto-based options expire.
XRP is trading at $2.76, down 4% in the last day and 9% in the week. Solana is down 6 per cent at $195 over the past day and 20.24 per cent over the week.
There were withdrawals from each of its competitors’ ETFs: Fidelity, Bitwise, ARK 21Shares, Franklin, VanEck, and Grayscale.
The cooling comes after two extremely successful months for Bitcoin ETFs, with inflows totalling over $57 billion. BlackRock has not experienced an outflow day in three weeks, so it’s not all bad news. BlackRock’s IBIT was the only fund to see an inflow with $78 million coming into the product yesterday.
According to ETF specialist Eric Balchunas, “this is a covered call Bitcoin strategy to give BTC some yield. It’s noteworthy that BlackRock is launching another Bitcoin product, which, in my opinion, indicates they are going to build around BTC and ETH and lay off the rest, at least for the time being, given all the other coins that are about to be ETF-zed. As a result, the competition for these other coins is considerably more open.”
A similar $251 million outflow on Ethereum yesterday put spot ether funds in the red as well. The asset has plummeted by double digits in less than a week, leaving $547 million in ETH funds for the week thus far.
On a more positive note, the Securities and Exchange Commission met with issuer VanEck on Thursday to discuss tokenizing ETFs.