Bitcoin fell sharply to $105,800 at the time of writing, marking a 4.5% daily decline and extending this week’s market correction. The drop comes amid a surge in institutional outflows from U.S. spot Bitcoin ETFs, rising macroeconomic tensions, and a critical technical breakdown.
According to CoinMarketCap data, the world’s largest cryptocurrency now holds a $2.1 trillion market cap, with daily trading volume climbing 38% to nearly $95 billion, signaling heightened volatility.
The sharpest pressure came from ETF markets. U.S. spot Bitcoin ETFs recorded $536 million in net outflows on October 16, the largest daily redemption since August. Major withdrawals were led by ARKB ($275M) and FBTC ($132M). Analysts say this reflects institutional profit-taking after Bitcoin’s 58% year-to-date rally, with fund flows now mirroring broader risk sentiment.
Technically, Bitcoin’s slide below the $108K–$109K support range triggered automated sell orders. The RSI reading of 37 indicates weak momentum, while the MACD histogram (-1,339) signals ongoing bearish divergence.
Adding to the pressure, escalating U.S.–China trade tensions have driven traders to rotate roughly $19.4 billion into stablecoins, draining liquidity from crypto markets. The Crypto Fear & Greed Index dropped to 28 (“Extreme Fear”), underscoring the current sentiment-driven sell-off.
