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    Zafar is a seasoned crypto and blockchain news writer with four years of experience. Known for accuracy, in-depth analysis, and a clear, engaging style, Zafar actively participates in blockchain communities. Beyond writing, Zafar enjoys trading and exploring the latest trends in the crypto market.

    • 2 minutes read

    Bitcoin Likely to Remain Under Pressure as Massive ETF Outflows Shake the Market

    • currency-symbol BTC $ 89,948.05 (-0.68%) top looser
    Story Highlights
    • Bitcoin has dropped over 33% from its all-time high, now trading near $84K.

    • U.S. Bitcoin ETFs saw nearly $1 billion in outflows, the second-largest drop on record.

    • Over the past month, ETF outflows have reached $4 billion.

    Bitcoin has plunged more than 33% from it’s all-time high of $126K and is now trading around $84K, after briefly dipping to $81K. The recent price declines, combined with growing outflows from Bitcoin ETFs, are raising concerns that it could see further drops. 

    Bitcoin ETFs See $1 Billion In Outflows 

    According to a report from Bloomberg, investors recently pulled nearly $1 billion from Bitcoin ETFs, marking the second-largest daily outflow for the group of 12 funds. BlackRock’s IBIT led the sell-off with $355 million withdrawn, while Grayscale’s GBTC and Fidelity’s FBTC each saw nearly $200 million in outflows. 

    These funds are also on pace for their worst weekly outflow since February, which highlights the growing volatility in the market.

    Over the past month, investors have pulled nearly $4 billion from these ETFs, and Bitcoin has dropped about 30% in the same period. Both retail and institutional traders are watching these flows as key signals for managing risk.

    According to an analysis by Alex Saunders at Citi Research, every $1 billion withdrawn from Bitcoin ETFs roughly equals to a 3.4% drop in Bitcoin. While inflows can boost Bitcoin’s price, the outflows can also worsen the price drops.

    The analyst notes that with long-term investors staying cautious and new investors not in a hurry to buy, the inflows could remain slow. Bitcoin ETFs recorded over $238 million in inflows yesterday.

    Record Volume Amid Market Stress

    In a recent update, Bloomberg analyst Eric Balchunas highlighted a massive surge in Bitcoin ETF trading volume, reaching a record $11.5 billion in a single day. BlackRock’s IBIT fund alone accounted for $8 billion, marking its own record. 

    He explains that while the spike looks wild, it is normal during periods of stress. ETFs often act as “liquidity release valves,” where investors actively adjust positions.

    Retail Investors Dominate 

    Crypto markets came under pressure after a massive liquidation event wiped out billions in leveraged positions.

    Before October, investors rushed into crypto in hopes that the Trump administration would continue to help integrate the industry into mainstream finance. While institutions are now more involved in crypto than ever, retail investors still dominate the market. They hold about 75% of spot-Bitcoin ETF assets, according to Bernstein.

    However, the recent outflows from Bitcoin ETFs are still small compared to their $113 billion in total assets. The interest has still not faded as ETF issuers are launching new crypto funds, with 17 ETFs debuting since October 10, with more awaiting SEC approval.

    Bitcoin Faces Continued Pressure 

    CryptoQuant analysts note that whale activity in Bitcoin futures remains absent, and even retail trading, which has been the main driver recently, is thinning. Trading volumes are low, and liquidity is also weakening. 

    So, unless institutional demand returns or retail participation picks up, Bitcoin is likely to remain under pressure, with little chance of a strong near-term rebound.

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    FAQs

    Why Bitcoin price is down today?

    Bitcoin is down today because heavy ETF outflows, low trading volume, and cautious investor sentiment are weighing on the market.

    Are retail investors still driving the Bitcoin market?

    Yes. Retail investors still dominate BTC ETFs, but their weaker activity is slowing overall market momentum.

    Will Bitcoin recover soon?

    A quick recovery is unlikely unless institutional buying returns or retail demand strengthens to support prices.

    How much will 1 Bitcoin cost in 2025?

    As per Coinpedia’s BTC price prediction, the Bitcoin price could peak at $168k this year if the bullish sentiment sustains.

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