Bitcoin ETFs enter 5-day outflow streak as nearly $2B exit

U.S. spot Bitcoin exchange-traded funds (ETFs) have experienced outflows of nearly $2 billion over the past five trading days, contributing to Bitcoin's drop below $100k for the first time since May. According to data from SoSoValue, the 12 spot Bitcoin ETFs recorded their fifth consecutive day of net outflows as investors pulled $577.74 million on November 4. Fidelity’s FBTC led these withdrawals with $356.58 million, followed by ARK 20Shares’s ARKB, which saw $128.07 million in outflows. Combined, all Bitcoin ETFs saw $93 million in additional withdrawals and no inflows. These significant outflows underscore the wavering confidence in Bitcoin-centric investment products.

The trend of outflows extended to Ethereum ETFs, which similarly recorded losses. As of Tuesday, nine spot Ether ETFs lost a combined $219.37 million during the day, pushing their five-day outflow streak to $719 million. Both Bitcoin and Ethereum ETFs are facing reduced demand, particularly from institutional investors, hinting at broader volatility patterns rooted in macroeconomic uncertainties.

Macroeconomic factors, such as debates over additional Federal Reserve rate cuts, stronger U.S. labor data, and ongoing inflation concerns, are contributing to investor hesitation. Externally, rising bond yields, a surging U.S. Dollar, and geopolitical frictions between Washington and Beijing are further dissuading investors from re-entering risk asset markets like cryptocurrency. The Crypto Fear and Greed Index, which gauges overall market sentiment, edged up slightly to 23 but remains in the 'Extreme Fear' zone, indicating continued caution among market participants.

On Tuesday, November 4, Bitcoin (BTC) fell below the critical $100k psychological level for the first time since May, reaching a daily low of $99,076 before rebounding to approximately $102,000 at the time of writing. Despite this recovery, Bitcoin remains 2.6% down for the day, signaling a broader market sell-off. As Bitcoin struggles, Ethereum (ETH) declined further by 5.7%, trading at $3,293, while XRP, Solana (SOL), and Cardano (ADA) faced 2-3% losses. Traders are now watching the $98,000 support level, which represents a recent low and an important zone of trading activity.

The $100k level had served as an important psychological anchor for retail and institutional traders alike. Since dipping to $99,705 in late June, Bitcoin had consistently stayed above this zone, reinforcing its significance. With Bitcoin now falling below this threshold, risks of further downside persist, and many traders are eyeing the $98,000 support area as the next critical test for the cryptocurrency's stability.

The broader cryptocurrency market experienced a 2% drop in its combined value, as heavy outflows and liquidations pressured prices. Despite minor market corrections, uncertainties over Federal Reserve policy and global economics continue to weigh on investor sentiment. Note: This article does not constitute investment advice and is for educational purposes only.