Crypto market recap: Bitcoin and Ethereum plunge amid massive U.S. ETF withdrawals

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Bitcoin and Ethereum tumble

Bitcoin loses ground: ETF outflows accelerate

U.S. spot Bitcoin ETFs recorded major outflows over two consecutive days — $536 million on October 16 and $366 million on October 17 — indicating a rapid shift in sentiment. Several large funds reported significant redemptions, adding pressure to the market. This drop coincided with a wave of multi-billion-dollar liquidations and signaled declining confidence in risk assets.

On the charts, Bitcoin fell below key support levels and is struggling to reclaim the $108,000–$110,000 range. If buyers fail to regain control, the price could slide toward $100,000.

BTC Price Trend, Source: TradingView

Experts also note that large holders (“whales”) have reduced activity, while retail traders now dominate the market — a pattern often seen near the end of bull cycles.

Still, there are some positive signs. Bitcoin balances on exchanges continue to fall — since early October, users have withdrawn about 45,000 BTC worth over $4.8 billion, suggesting accumulation. Analysts also point out that current MVRV (Market Value to Realized Value) ratios indicate potential entry points for long-term investors.

A separate study by 10X Research estimated that retail investors lost around $17 billion due to the decline in stock prices of companies holding Bitcoin in their reserves.

Ethereum under pressure, but new investors emerge

Ethereum has also come under heavy pressure: over $200 million worth of futures positions — mostly longs — were liquidated in a single day. The token briefly dropped below $3,815 before slightly rebounding. If it fails to stay above $3,800, the next support level lies around $3,500.

However, amid the sell-off, a new source of support is forming. Major Asian investors are preparing a $1 billion Ethereum treasury, with HongShan Capital (formerly Sequoia China) and Avenir Capital already pledging contributions. BitMine and SharpLink are also continuing to accumulate Ether.

On Ethereum charts, a “bull flag” pattern has emerged — a formation that could signal a potential reversal and a rally toward $5,000 if the market stabilizes.

Conclusion

The cryptocurrency market currently teeters between fear and hope. On one hand, ongoing ETF outflows and weak price performance raise concerns. On the other, shrinking exchange balances and significant investments in Ethereum suggest that major players may be positioning for the next growth phase.

To restore optimism, Bitcoin needs to hold above $108,000, while Ethereum must stay above $3,800.

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