Bitcoin Slumps to 5-Month Low Amid $1B ETF Outflows
Bitcoin falls to a 5-month low as ETF outflows, Fed uncertainty, and $1.1B in liquidations rattle the crypto market.
- Bitcoin tumbles to lowest level in 5 months, driven by ETF exits
- Fed rate-cut doubts and weak labor data fuel market fear
- Over $1.1B in liquidations deepen crypto selloff
The crypto market saw a sharp downturn as Bitcoin crashed to its lowest price in five months, triggered by renewed doubts about Federal Reserve rate cuts, softer-than-expected labor data, and massive outflows from spot Bitcoin ETFs. Over $1 billion exited Bitcoin ETFs in just 24 hours, signaling investor anxiety and prompting a wider selloff.
Bitcoin dropped 6.2% to around $57,359, while Ethereum fell even more sharply—down 9.5% to $3,210. The broader crypto market lost significant value, with the total crypto market cap declining to $3.48 trillion.
Fear Spikes as Liquidations Cross $1 Billion
Investor sentiment quickly turned sour, with the Fear and Greed Index plunging to 16, indicating “Extreme Fear”. This negative sentiment was matched by sharp movements in derivatives markets. In the past day, long liquidations across crypto platforms topped $1.1 billion, wiping out leveraged bullish positions.
A significant part of the decline stems from uncertainties surrounding the Federal Reserve’s next moves. Despite earlier expectations for interest rate cuts, recent economic data has introduced doubt. A softer labor market could suggest economic weakness, but not enough to guarantee immediate easing—keeping investors on edge.
What’s Next for Bitcoin?
While some see this pullback as a buying opportunity, others caution that further volatility could follow if macroeconomic pressure persists. The heavy Bitcoin ETF outflows show that institutional sentiment is currently shifting toward risk-off behavior.
With the market gripped by extreme fear and technical support levels being tested, all eyes are on the Fed and future macro indicators for clues on where Bitcoin and the broader crypto space might head next.
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