Bitcoin price prediction: BTC drop deepens as ETF outflows weigh on investor sentiment

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Sholanke Dele

31.10.2025

Bitcoin price prediction: BTC drop deepens as ETF outflows weigh on investor sentiment — Bitcoin is attempting to recover after its four-day decline

Bitcoin price dropped over 4% in the past 24 hours following the Federal Reserve’s 25-basis-point rate cut, falling from the 20-day EMA resistance to below last week’s low at $106,300. The decline marked the fourth consecutive bearish day for Bitcoin, deepening the week’s negative tone. Since Monday, Bitcoin price movement has been bearish alongside rising daily traded volume, and the Fed’s midweek rate cut failed to alter sentiment across the market.

- Bitcoin extends decline after Fed rate cut triggers heavy ETF outflows and weak sentiment.

- Death cross pattern forms near $111,500, strengthening bearish case for deeper BTC losses.

- Fear and Greed Index near extreme fear highlights fragile confidence among Bitcoin traders.

The global mood surrounding Bitcoin has deteriorated further, as shown by the Binance Fear and Greed Index, which slipped from 34 yesterday to 31 today, approaching extreme fear territory. This weakening sentiment is being compounded by continued sell-offs in U.S. spot Bitcoin ETFs. Over the past two days, Bitcoin ETFs recorded $488.43 million in outflows, led by BlackRock’s $290.88 million withdrawal. Ark & 21Shares ARKB saw $65.62 million in outflows, Bitwise BITB reported $55.15 million, and Grayscale GBTC shed $10.01 million. Out of twelve funds, eight reported net withdrawals with no inflows. Total trading value declined to $5.17 billion, while net assets fell to $143.94 billion, representing 6.71% of Bitcoin’s total market capitalisation.

Bitcoin price dynamic (Fed - Oct 2025). Source: Tradingview

Today, Friday, October 31, Bitcoin is attempting to recover after its four-day decline. From Thursday’s close at $108,300, the price has risen 1.8% to $110,200 between the Asian and European sessions. However, the one-hour chart shows this rebound occurring on declining volume, suggesting limited conviction behind the move.

Bearish EMA crossover on 4-hour chart reinforces technical resistance near $111,500

For the week, Bitcoin’s loss stands at 4%, while its month-to-date performance has dropped by 3.4%. On the four-hour chart, a death cross pattern appeared on Thursday as the 20 EMA crossed below both the 50 and 100 EMAs, reinforcing bearish sentiment and highlighting downside risks. These EMAs now cluster near $111,500, forming resistance that could cap any short-term recovery.

If buyers fail to push above the $111,500 barrier, Bitcoin could resume its decline toward $105,000. Conversely, sustained buying above that level could help stabilise price action into the next trading week, though overall sentiment and technical indicators still point to weakness as October closes.

We discussed Bitcoin rebounding above $110,000 after the Fed’s 25 bps cut sparked mild market optimism. The long-to-short ratio above 2.0 showed traders were anticipating stronger near-term recovery momentum.

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