Key Insights:
- The crypto market is down today, and BTC price dipped below $108,000 after slipping nearly 3% in 24 hours as volatility from last week’s liquidation wave lingers
- Bitcoin and Ethereum ETFs have clocked four straight days of withdrawals, with net BTC ETF outflows of more than $1.2 billion
- A Bloomberg report says the Bank of Japan is nearing a rate increase as inflation holds above target, adding fresh uncertainty to global liquidity and intensifying risk‑off sentiment
The crypto market was under pressure on Tuesday as the BTC price extended losses below $108,000.
Ethereum tumbled nearly 4%, and other major altcoins, including BNB, XRP, and SOL, followed suit.
The pullback comes amid consecutive crypto ETF outflows and renewed macroeconomic and geopolitical anxieties, shaking market confidence.
Crypto Market: BTC Price Slides Below $108K
Bitcoin’s recent attempt to reclaim $111,000 was short‑lived. As of this morning, it hovered around $107,700, down roughly 3% over 24 hours.
The global crypto market cap fell 2.9% overnight to around $3.76 trillion, according to CoinGecko data.
The broader sentiment remains fragile, with the Fear & Greed Index at 34, firmly in “fear” territory.
The crypto prices turbulence follows the recent crypto market crash, when a record $19 billion liquidation wave flushed excess leverage in under 24 hours.
Though derivatives funding rates have reset, momentum traders appear reluctant to step back in until volatility stabilizes.
ETF Outflows Hit ETH and BTC Price
Adding to the pressure, institutional capital continues to bleed from US spot crypto ETFs.
Data from Farside Investors shows four days of consecutive BTC ETF outflows, with net outflows of more than $1.2 billion, the second‑largest weekly setback since their launch in January 2024.
BlackRock’s IBIT shed $101 million yesterday and $268 million last Friday, while Fidelity’s FBTC and ARK’s ARKB saw combined outflows exceeding $450 million over the same week.
The outflow streak reduced total Bitcoin ETF assets under management to $149.6 billion (≈ 6.7% of total BTC market value), according to BitBo’s ETF tracker.
Ethereum spot ETFs are also reversing course. According to RootData, ETH funds recorded $312 million in net outflows last week, led by BlackRock’s ETHA , which lost $245 million, followed by Grayscale’s ETHE with $101 million.
Collectively, ETH ETFs now manage $25.9 billion, representing 5.6% of Ethereum’s market capitalization.
ETF outflows have become a short‑term proxy for institutional risk sentiment on the crypto market. Traders appear to be scaling back exposure after last week’s volatility and the potential looming macro tightening cycle.
Rate Hike Worries Unsettle Macro Outlook
Macro headwinds are adding fuel to the crypto prices sell‑off. A Bloomberg report this morning indicated the Bank of Japan (BoJ) is close to its first interest‑rate hike in nearly two decades as inflation runs above target.
The news reverberated through global markets, pushing the yen higher and sparking risk‑off moves across equities and the crypto market.
Combined with the dollar’s renewed strength and tighter liquidity conditions globally, speculative assets like Bitcoin and Ethereum are caught in the cross‑currents.
Traders now fear synchronized tightening as central banks, including the Fed and ECB, hint at holding policy restrictive into 2026.
‘Insider Whale’ Deepens Short Position
On‑chain data revealed that the now-infamous ‘insider whale’ increased its Bitcoin short position by 100 BTC with 10x leverage, bringing its total exposure to 1,100 BTC (about $121 million).
The move has not gone unnoticed among traders and analysts.
Since this whale timed the market with impeccable precision, opening a massive BTC short just minutes before Trump’s tariff announcement that triggered the cascade of liquidations, market participants are on edge.
Many are questioning what this whale knows, especially with the BTC price bleeding today.
Bearish sentiment is adding up, as trader Axel Adler pointed out that the bulls failed two attempts to regain control on October 13 and October 20. He commented:
Crypto Market Outlook
At the time of writing, the crypto prices face a major pullback, sparking market concerns. Bitcoin price was trading near $107,800 while Ethereum hovered around $3,800, down over 4% in 24 hours.
XRP and BNB also slipped by almost 5%, while XRP fared better at 2.2% amid low momentum.
For now, analysts are watching two immediate catalysts: a potential BoJ policy shift and this week’s Fed communications on liquidity tightening.
Should risk sentiment stabilize, short‑term support for the BTC price sits around $106,000, while $110,000 remains the key resistance to reclaim.
For now, the combination of ETF outflows, macro uncertainty, and aggressive short positioning keeps the market defensive.
Long‑term bulls, however, may view this cooling period as healthy after months of overheated speculation.