Consecutive outflows from spot Bitcoin and Ethereum ETFs in the US have deepened the selling pressure in the crypto market. Bitcoin fell below $112,000 on Tuesday, extending its two-day decline. Analysts say both ETF outflows and the reduction in positions in derivatives markets are dampening investors' risk appetite.
Bitcoin Price Falls
Market data shows Bitcoin's daily loss exceeded 3%, with the broader market following a similar pattern. Among the top 10 cryptocurrencies, BNB, linked to the Binance ecosystem, suffered one of the sharpest declines, losing nearly double-digit value.
At the beginning of the week, spot Bitcoin and Ether ETFs in the US recorded a total net outflow of $755 million. According to SoSoValue data, $326.5 million came from Bitcoin ETFs and $428.5 million from Ethereum ETFs. Grayscale's GBTC fund withdrew $145 million, Bitwise's BITB fund withdrew $115 million, while funds from Fidelity, Ark&21Shares, and VanEck also suffered losses. BlackRock's IBIT fund alone reported $60 million in inflows. On the Ethereum side, BlackRock's ETHA fund alone saw $310 million outflows—the fund's second-worst performance since launch.
"Monday's outflows reflect the cautious atmosphere following the massive liquidations," said Vincent Liu, investment director at Kronos Research. "Investors are currently awaiting clearer macro signals. Sentiment and risk perception, rather than fundamentals, are driving pricing."
Last weekend, US President Donald Trump's announcement of 100% tariffs on Chinese imports triggered one of the largest crypto liquidations in history. Bitcoin tested below $105,000 as more than $500 billion in market value was wiped out. While prices later saw a partial recovery after Trump softened his rhetoric, institutional investors remain cautious.
BRN research director Timothy Misir noted that ETF outflows accelerated and open interest plummeted: "Leverage has decreased, forcing the market to become defensive in the short term." According to DeFiLlama data, total open interest on derivatives exchanges fell from $26 billion to less than $14 billion; DEX trading volume hit a record $177 billion, and lending fees exceeded $20 million in a single day.
QCP Capital emphasized that US-China trade tensions played a significant role in the recent decline. In addition to the 100% tariff decision, China's export restrictions also fueled panic selling. According to CoinGlass data, $511 million in long positions were liquidated on October 14th alone, sending Bitcoin down to $110,000.
Risk aversion has also become evident in the options market. Derive founder Nick Forster reported that investors are turning to near-term put options, with a surge in put buying for October 31st at $115,000 and $95,000. The prominence of selling in call positions for October 17th at $125,000 suggests a negative outlook in the short term.
According to Forster, the most important factor determining the future direction will be whether inflows in spot markets will strengthen again. "The market is currently lacking institutional demand. It's difficult to gain upward momentum without new inflows," he said.
China's statement Tuesday morning that "we will fight the trade war to the end" has once again intensified market tensions. Bitcoin fell 3.25 percent to below $112,000, while Ethereum fell 3.39 percent to $4,030.
