Bitcoin (BTC) and Ethereum (ETH) experienced significant price instability on Friday, September 26, with Bitcoin and ETH breaking below key support levels of $110,000 and $4000, respectively before reclaiming it.
In the past 24 hours, Ethereum (ETH) has gained 3.82%, climbing to $4,050 with a market cap of $488.8 billion. Bitcoin (BTC) also edged higher, up 0.39% to $109,983, holding a market cap above $2.19 trillion, according to CoinMarketCap. Despite the uptick, trading volumes for both assets declined, signaling that broader market sentiment remains cautious.
Bitcoin ETF outflows
The recent price correction for Bitcoin has accelerated, with the asset dropping below the $110,000 level. This movement coincides with significant selling pressure from institutional investors. According to market data from analytics platform SoSoValue show that the US Spot Bitcoin ETFs recorded outflows of $258 million on Thursday.
Bitcoin ETFs Inflow Chart September 25 Source: SoSoValue
Ethereum follows suit
Ethereum has mirrored Bitcoin’s downturn, experiencing similar price instability. The market for the second-largest cryptocurrency saw investor withdrawals totaling $251 million from its own spot ETF products.
ETH ETFs Inflow Chart September 25 Source: SoSoValue
The combined outflow of over $500 million signals a widespread “risk-off” sentiment among institutional players, suggesting they are reducing their exposure to digital assets in anticipation of further volatility.
This trend suggests that large-scale investors are actively reducing their exposure to digital assets in anticipation of further market volatility.The current downturn follows a period of instability where Bitcoin recently lost key support levels, while ETH’s supply on centralized exchanges has hit its lowest point since 2016.
The Crypto Fear and Greed Index dropped to 32 (Fear), down from a neutral 41 yesterday, according to CoinMarketCap. The shift reflects growing investor anxiety after weeks of ETF outflows and weak technical signals, marking one of the lowest sentiment levels since March’s “extreme fear” reading.
The substantial outflows from institutional investment products mark a clear shift in market sentiment, acting as the primary driver for the current weakness in Bitcoin and Ethereum prices. Continued withdrawals could lead to further price declines in the short term unless there is a significant improvement in overall market confidence. For now, investor caution appears to be shaping the immediate future of the digital asset market.
Also read: Trader Loses $45M as Ethereum Price Drops Below $4,000