The crypto market was hit by a sharp loss of 200 billion dollars, as the tension between the U.S. and China increased. Bitcoin fell 3 percent to 110,500, unable to maintain its position above the 115K level. Ether also fell to less than 4,000 and BNB was down by 12%. New U.S.-linked company sanctions by China added to the risk-off mood around the globe and were the catalyst for the broad sell-off.
ETFs See Major Outflows
The ETF investors responded promptly. Bitcoin and Ethereum ETFs recorded a total of 755 million redemptions on October 13. GBTC and BITB were the largest Bitcoin outflows and ETHA experienced the largest Ethereum outflows. The only IBIT that had fresh inflows was that of BlackRock. The total inflows in ETFs since 2024 have been reported to be high at 76 billion despite the outflows.
BTC Faces Key Price Test
Analysts regard $110K -108K as the liquidity range of BTC in the short term. A fall below might take it to104K. Positively, a break beyond $115K would put the mood back to the bull side. Furthermore, falling open interest is an indication of de-risking, and there are fewer leveraged trades at work – so real spot demand matters.
Caution Defines Market Mood
Institutions are safe and retail is an outcast. The next leg will be determined by the ETF inflows exceeding $500 million/day. Nowadays, Bitcoin is trading in a risk-controlled banding, under the influence of macro news and investor cautiousness.
