Bitcoin bear market momentum accelerated as the largest cryptocurrency fell below $95,000, with investors yanking about $870 million from US-listed exchange-traded funds in a single day. The bout of risk aversion across markets pushed Bitcoin down as much as 4.3% to $94,508, leaving the token close to erasing its gains for the year.
Key Points
The retreat follows a period of turbulence that has weighed on sentiment since early October, when Bitcoin set a record high of $126,251. It ended 2024 at $93,714, underscoring how quickly the comeback has faded amid tightening liquidity and shifting macro expectations.
ETF flows added to the pressure. Net outflows of roughly $870 million on Thursday marked the second-largest daily withdrawal since the funds launched, highlighting fragile confidence and the grip of the Bitcoin bear market on investor behavior.
Market Moves and Price Context
The day’s slide pushed Bitcoin near year-to-date flat, a stark reversal from early October’s peak. Broader crypto assets remained under strain, reflecting the cumulative impact of futures liquidations and risk-off positioning.
According to CoinGecko, the Oct. 10 washout triggered about $19 billion in liquidations and erased more than $1 trillion from the total crypto market capitalization. The unwind hasn’t stopped: CoinGlass data show more than $1.3 billion in leveraged bets were wiped out in the past 24 hours, keeping the Bitcoin bear market narrative in focus.
How ETF Outflows Are Fueling the Bitcoin bear market
US Bitcoin ETFs saw net outflows of about $870 million on Thursday, the second-largest daily drawdown since their debut, based on data compiled by Bloomberg. Outflows can amplify spot price pressure by forcing funds to reduce exposure, particularly when liquidity is thin.
Premarket signals in related products echoed the caution. The sustained outflow streak has become a bellwether for near-term sentiment and a key variable in the Bitcoin bear market’s trajectory.
Macro Backdrop and Correlation Risk
A brief equity rebound tied to relief over the end of the US government shutdown faded quickly. With key economic data releases delayed, traders are reassessing whether the Federal Reserve can justify near-term rate cuts—an adjustment that’s weighing on risk assets.
“The current selloff is fully correlated with other risk assets, but the magnitude in crypto is larger given its higher volatility,” said Max Gokhman, deputy CIO at Franklin Templeton Investment Solutions. “Crypto’s beta to macro risks will stay high until deeper institutional participation broadens beyond Bitcoin and Ether.”
That macro linkage has intensified as investors rotate toward safety, feeding the Bitcoin bear market and increasing sensitivity to shifts in interest-rate expectations.
Liquidity Thins as Depth Shrinks
Liquidity has deteriorated. Market depth—orders within 1% of the mid-price—has fallen roughly 30% from this year’s high since the Oct. 10 meltdown, according to Kaiko. Thinner depth means even modest sell orders can move prices more sharply, worsening intraday swings.
Lower liquidity often coincides with larger price gaps during periods of forced deleveraging. That dynamic has been a hallmark of the Bitcoin bear market over the past month, keeping rallies tentative and pullbacks abrupt.
Technical Picture and Sentiment
“With Bitcoin now having turned negative since President Trump’s inauguration, and the overall crypto market cap having round-tripped year-to-date, there is not much technical support from here to the low $90,000, with sentiment likely to stay depressed until further notice,” said Augustine Fan, partner at SignalPlus.
The comment captures a mood shift that has dogged the Bitcoin bear market: buyers are cautious, and overhead supply remains heavy after October’s topping pattern. Without clearer catalysts, tactically minded traders are favoring risk controls over outright directional bets.
Options Markets Signal Volatility
In derivatives, positioning points to higher volatility ahead. “Traders are increasingly positioning for volatility, with demand rising for neutral strategies such as strangles and straddles,” said Nick Ruck at LVRG Research.
Such flows can reinforce range-bound trading until a breakout catalyst emerges. In a Bitcoin bear market, increased demand for volatility strategies often coincides with lower spot liquidity and quicker reactions to macro headlines.
Company Impact: Strategy Inc. Under Pressure
Beyond tokens, equity proxies wobbled. Shares of Bitcoin Accumulator Strategy Inc. slid about 6% in premarket trading, raising the possibility that its enterprise value could fall below the value of its roughly $61 billion in Bitcoin holdings.
As of Thursday, the company’s enterprise value—including debt and preferred equity—stood at about $74.8 billion, according to data compiled by Bloomberg. Despite the drop, Chairman Michael Saylor telegraphed resolve on Friday morning with a one-word post on X: “hodl.”
The move underscores how equity exposures tied to crypto balance sheets can magnify the effects of the Bitcoin bear market, especially when risk-off sentiment undercuts both token prices and related stocks.
What’s Driving the Pressure Now
- Persistent liquidations following the Oct. 10 shock, with another $1.3 billion cleared in the last 24 hours.
- The second-largest daily net outflow from US Bitcoin ETFs since launch—about $870 million on Thursday.
- Liquidity is thinning, with market depth down roughly 30% from the year’s high, per Kaiko.
- Macro uncertainty as traders question the timeline for Fed rate cuts after delayed data releases.
Each factor compounds the others, creating a feedback loop that has defined the current phase of the Bitcoin bear market.
Reactions and Updates
Market strategists are emphasizing macro correlation and liquidity as the dominant drivers. Gokhman’s assessment of elevated crypto beta to broader risks aligns with the day’s moves across risk assets.
Derivatives desks point to rising interest in non-directional structures, while technical analysts warn of scant support into the low $90,000s—a level cited by SignalPlus’s Augustine Fan. Meanwhile, social media signaling from key industry figures continues to champion long-term holding as a counterweight to near-term volatility.
What to Watch Next
- ETF flow trends: Whether outflows stabilize or accelerate will be a key tell for near-term direction.
- Liquidity and depth: Monitoring order-book depth around the 1% band can flag potential air pockets.
- Volatility metrics: Options skew and demand for straddles/strangles may foreshadow larger moves.
- Macro catalysts: Any clarity on delayed data releases and the Fed outlook could shift cross-asset risk appetite.
Sustained improvements across these indicators would help counter the mechanics of the Bitcoin bear market; further deterioration would likely keep pressure on prices.
Conclusion
The Bitcoin bear market gathered pace as the price broke below $95,000, ETF investors withdrew about $870 million in a day, and liquidity thinned across order books. Liquidations since the Oct. 10 washout continue to reverberate through the ecosystem, while options markets brace for more volatility.
With macro uncertainty lingering and technical support limited toward the low $90,000s, the path of least resistance remains cautious. Stabilization in ETF flows, a rebound in market depth, and clearer policy signals could help restore footing. Until then, the Bitcoin bear market remains the dominant theme shaping crypto prices and sentiment.
FAQ’s
Why is Bitcoin falling today?
Risk aversion hit crypto alongside other assets, while US Bitcoin ETFs saw about $870M in net outflows. Continued liquidations and thin liquidity added pressure, pushing BTC below $95,000.
What do Bitcoin ETF outflows mean for price?
Net outflows force funds to reduce exposure, which can weigh on spot prices—especially when market depth is low. Thursday’s $870M was the second‑largest daily outflow since launch.
What technical and liquidity levels matter next?
Analysts see limited support until the low $90,000s. Order‑book depth is down roughly 30% from this year’s high, making prices more vulnerable to larger swings.
