Bitcoin ETF Outflows Trigger $536M Crypto Market Crash

The cryptocurrency market faced another brutal selloff as massive outflows from US Spot Bitcoin ETFs triggered widespread panic and uncertainty. Data from SoSoValue reveals that Thursday, October 16, saw a staggering $536.4 million in daily net outflows from Spot Bitcoin ETFs, marking the largest single-day negative flow since August 1 when $812 million exited the market. This extended a three-day outflow streak that has seen eight major ETFs experience significant withdrawals, with persistent negative flows now stretching into their third consecutive day.

Among the twelve US Bitcoin ETFs, eight registered major outflows, led by $275.15 million leaving Ark & 21Shares’ ARKB, followed by $132 million from Fidelity’s FBTC. Funds managed by other major companies including Grayscale, BlackRock, Bitwise, VanEck, and Valkyrie also reported significant withdrawals. The sustained negative ETF flows underscore waning investor confidence and suggest that the broader market downturn could continue in the near term, compounding fears sparked by last week’s $19 billion liquidation event.

Bitcoin and Ethereum prices suffered steep retracements from their recent highs, with Bitcoin tumbling 13.3% over seven days and Ethereum sliding 17.8% over the past month. At press time, Bitcoin was trading slightly above $106,940 while Ethereum sat around $3,870. Crypto analyst Jana on X social media described the event as one of the bloodiest weekly downturns of the quarter, characterizing the correction as a less severe but still significant reflection of last week’s brutal selloff that wiped billions from the market.

Technical analysts are pointing to signs of deeper weakness in Ethereum’s structure specifically. According to Crypto Damus, Ethereum has broken key weekly support and is displaying a bearish setup on the charts. He notes that the MACD indicator is about to “cross red,” leaving significant room for further decline. Other analysts like Marzell have echoed similar concerns, stating that Ethereum is now nearing a “crash zone,” though he highlighted the $3,690 – $3,750 range as a possible short-term demand area where buyers could step in again.

Market experts are warning that the crypto market may still have more room for decline despite the recent sharp corrections. Data from Polymarket, one of the world’s largest prediction platforms, shows that 52% of participants expect Bitcoin to drop below $100,000 before the end of October, indicating widespread bearish sentiment among market participants. This pessimistic outlook reflects growing concerns about the sustainability of the current market structure.

Veteran economist and Bitcoin critic Peter Schiff has amplified these concerns, warning that the coming months could be catastrophic for the industry. Schiff predicts widespread bankruptcies, defaults, and layoffs as Bitcoin and Ethereum face another major leg down. Combined with the recent $19 billion liquidation event and increased outflows in ETFs, these expert warnings suggest that additional selling pressure could further destabilize the already fragile market, potentially triggering deeper corrections in the weeks ahead.