Crypto Markets Tumble as Bitcoin Support Crumbles and ETF Flows Flip Negative
Digital assets face brutal selloff as critical technical levels give way
BITCOIN'S FOUNDATION SHAKES
The flagship cryptocurrency breaches key support zones that traders have watched for months, triggering cascading liquidations across derivatives markets. Institutional money flees as spot ETF flows reverse from steady inflows to concerning outflows.
ALTCOINS GET HAMMERED
Ethereum, Solana, and major altcoins bleed alongside Bitcoin, with some losing double-digit percentages in 24 hours. The fear and greed index plunges toward extreme fear territory as leveraged positions get wiped out.
MARKET PSYCHOLOGY SHIFTS
Traders who bought the dip now face margin calls, while long-term holders debate whether this represents a buying opportunity or the start of deeper correction. Analysts point to macroeconomic pressures and regulatory uncertainty as contributing factors.
Just another day in crypto—where your portfolio can drop 20% before your morning coffee gets cold.
Bitcoin ETF flows reverse
The cautious outlook and recent market crash coincide with a sharp reversal in the flows for U.S.-listed spot exchange-traded funds.
Otychenko warned that the pressure could continue. “Crypto ETFs are still feeling the Ripple effects of last week’s tariff-driven selloff,” he said. “More withdrawals are possible if geopolitical tensions persist.”
Following a strong start to the week, U.S. spot bitcoin ETFs experienced a significant outflow of $326.5 million on October 13, according to data from SoSoValue.
The rapid deterioration in institutional sentiment follows Bitcoin ETF inflows reaching a yearly high on October 6.
The changing mood is also reflected on Myriad, a prediction market launched by Decrypt's parent company DASTAN, where the "greed" sentiment indicator has dropped from 64.1% on Monday to below 50% at the time of writing. Fear, on the other hand, has accelerated, climbing to 51.1%.
The rebalancing suggests traders are becoming more cautious and risk-averse in the current uncertain environment with persistent macro risks.
Building on the bearish sentiment, Regterschot said that if the $112,500 support level breaks, the next key level based on short-term holder realized price is $103,500.
“During the 2025 bull run, Bitcoin’s price found support about 10% below the average cost basis of short-term holders. Assuming the bull run isn’t over, this is likely the next level Bitcoin is heading toward,” he added.
