Bitcoin Dips Below $105K as ETF Outflows and Whale Activity Shake Market Confidence
Bitcoin’s recent price slide has sent shockwaves through the cryptocurrency market, plunging below $103,700—its lowest point since June. This sharp decline was accompanied by widespread liquidations and triggered a surge in bearish sentiment, with the Crypto Fear & Greed Index falling to 21, signaling “extreme fear.”
In the past 24 hours alone, over $1.27 billion in leveraged positions were liquidated, according to Coinglass data, with long positions accounting for nearly 90% of the losses. The downturn gained momentum after Bitcoin breached its 200-day moving average around $109,800—a critical support level that had held steady for four months. This breakdown catalyzed a broader sell-off, not just in Bitcoin but across the altcoin space as well.
Ethereum saw a 6% drop, falling to $3,500, while Solana tumbled 10% below the $160 mark. Ripple’s XRP wasn’t spared either, sliding 5.5%. The synchronized move across major cryptocurrencies reflects growing risk aversion among investors, particularly after recent developments in macroeconomic policy.
A major factor fueling the decline was a spike in ETF outflows. On Monday alone, Bitcoin exchange-traded funds saw redemptions totaling $186.5 million—the largest daily outflow recorded since the beginning of the year. The bulk of these withdrawals came from BlackRock’s iShares Bitcoin Trust (IBIT), while other significant funds, such as Fidelity’s FBTC and ARK 21Shares’ ARKB, remained relatively unscathed.
These ETF outflows occurred alongside increased activity from large Bitcoin holders, commonly known as “whales.” Over the last month, more than 400,000 BTC—approximately 2% of the total circulating supply—were transferred to exchanges. This trend suggests that long-term holders may be locking in profits amid uncertainty.
One notable early investor reportedly moved 13,000 BTC (roughly $1.4 billion) since October. Another whale deposited 3,200 BTC on Kraken, further amplifying market anxiety. Analysts interpret these large transfers as signs of deteriorating confidence among long-term holders, potentially foreshadowing continued price weakness.
While Binance has seen increased self-custody withdrawals, on-chain analytics from CryptoQuant note that accumulation remains weak. The lack of strong dip-buying behavior raises concerns about the market’s readiness to absorb further selling pressure.
With Bitcoin now trading below multiple technical support levels, attention turns to the $100,000 mark—a key psychological and technical threshold. A decisive break below this level could open the door to deeper losses, possibly pushing the price toward $77,000. This level aligns with the 61.8% Fibonacci retracement zone and lows previously seen in April 2025.
Despite the current volatility, some market strategists argue that Bitcoin’s long-term bullish structure remains intact. Joel Kruger of LMAX points out that every major correction since 2023 has ultimately led to renewed accumulation near the 50-week moving average. He suggests that the present pullback, while severe, is part of Bitcoin’s broader market cycle.
Looking ahead, the ability of Bitcoin to maintain support above the $100K threshold will be crucial in determining whether this is a short-term retracement or the beginning of a more extended downtrend. If the market stabilizes and buying activity picks up, especially from institutional investors, the bullish narrative could regain traction.
However, several macroeconomic factors continue to weigh heavily on investor sentiment. Federal Reserve Chair Jerome Powell’s recent comments have dampened expectations for a December interest rate cut, leading to higher Treasury yields. As a result, investor appetite for risk assets like Bitcoin has weakened considerably.
In addition, global liquidity conditions are tightening. Central banks in major economies are maintaining cautious stances, which could limit the inflow of capital into speculative markets. This macroeconomic backdrop adds another layer of complexity to Bitcoin’s near-term outlook.
Moreover, historical analysis of Bitcoin’s price cycles reveals that corrections similar in size and scope often precede periods of consolidation before the next leg higher. During previous bull markets, retracements of 20-30% were not uncommon and typically provided strong entry points for long-term investors.
Retail investor behavior is also shifting. After a surge in interest earlier this year, Google Trends data shows declining search volume for Bitcoin-related keywords, indicating waning public enthusiasm. At the same time, institutional sentiment remains mixed, with some funds continuing to accumulate, while others take profits or reduce exposure.
On the technical front, analysts are closely watching moving averages and momentum indicators. The Relative Strength Index (RSI) for Bitcoin has dipped into oversold territory, suggesting a potential for short-term relief rallies. However, without a sustained reversal in ETF flows and on-chain accumulation, any bounce may prove temporary.
In the broader context, Bitcoin’s long-term value proposition as a hedge against inflation and a decentralized store of value remains unchanged. However, in the short term, the market is clearly in a phase of uncertainty and re-evaluation. Investors are advised to remain cautious and consider risk management strategies, especially in leveraged positions.
Ultimately, the coming days could prove pivotal. If Bitcoin manages to stabilize above $100K and if ETF redemptions slow down, confidence may gradually return. Otherwise, the risk of a deeper correction looms, with key support zones between $85K and $77K offering potential areas for accumulation.