Bitcoin cracked below $110,000 on Thursday as a brisk selloff erased billions in market value and forced more than a billion dollars of leveraged positions to unwind.
The downdraft arrived one day after U.S. spot Bitcoin ETFs posted $536 million in net outflows, a swift reversal that amplified the move and reminded traders how quickly fund flows can swing from support to drag.
ARK Invest’s fund recorded roughly $275 million in net withdrawals, while Fidelity’s vehicle saw about $132 million head out. Grayscale’s trust posted outflows near $45 million.
The pulls suggest investors chose to cut exposure through the easiest venue available, leaving authorized participants to meet those redemptions by sourcing and selling underlying Bitcoin into a falling tape.
Aggregate Ether ETFs booked about $56.8 million in outflows, but one BlackRock product attracted $46.9 million of fresh money that cushioned the blow.
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This relative steadiness helped narrow intraday losses in Ether compared with Bitcoin and extended a recent pattern where traders view the smaller asset as less tethered to the ebb and flow of Bitcoin ETF sentiment.
Futures liquidations north of $1.2 billion forced traders to reduce risk, while money managers showed a preference for cash and short maturities ahead of the Federal Reserve’s rate decision on Oct. 28 and 29.
Stablecoin reserves and treasury actions have added a new layer of demand that can offset weak days, as seen when Tether quietly grabs 8,888 Bitcoin to expand its holdings.
The ledger continue to whipsaw sentiment; an autumn SEC move prompts pullback in several altcoin ETF plans showed how quickly a single development can alter risk budgets.
Sustained redemptions would keep authorized participants selling into any bounce, which can suppress rallies and widen intraday ranges.
A quick return to creations would flip that dynamic and add a tailwind, particularly for funds that lead retail flows.
Only a few weeks ago, a 25 trillion comparison puts Bitcoin back in the spotlight, and corporate accumulation stories again made the rounds. The altcoin rally heats up narrative drew attention to rotation risks inside crypto.
This week’s ETF-led selloff pushes the focus back to Bitcoin’s role as the market’s lever and its sensitivity to fund flows that interplay will likely remain the main driver until macro uncertainty clears.
