Crypto Markets Slide as Key Bitcoin Support Weakens and ETF Flows Reverse
The cryptocurrency market is experiencing a broad downturn, with Bitcoin trading at around $110,800, down 3.4%, and Ethereum falling 4.5% to below $4,000. Total crypto market capitalization has dropped 4.4% to $3.85 trillion in the past 24 hours, amid elevated trading volumes and market volatility. Bitcoin is approaching the $112,500 short-term holder realized price level, considered a key support during bull markets, but repeated tests in recent weeks suggest this support is weakening as fewer buyers participate. The market downturn is exacerbated by renewed geopolitical frictions, especially from escalating U.S.-China trade tensions, which reignited uncertainty. U.S.-listed spot Bitcoin ETFs have seen significant outflows, including $326.5 million on October 13, reversing previous strong inflows and reflecting worsening institutional sentiment. Traders are becoming more risk-averse, as indicated by a sharp decline in "greed" sentiment and a rise in "fear." If Bitcoin breaks the $112,500 support, the next potential level is around $103,500, based on recent historical patterns.
