Bitcoin Market Faces Bearish Pressure Amid Major ETF Outflows and Investor Pessimism

The cryptocurrency market, particularly Bitcoin (BTC), is grappling with significant bearish momentum as large-scale liquidations and notable outflows from spot Bitcoin exchange-traded funds (ETFs) trigger widespread concern. The ongoing capital withdrawals have dampened investor sentiment, raising fears of further declines in the already volatile digital asset market.

Significant ETF Outflows Trigger Market Alarm

On October 18, the cryptocurrency market experienced what industry insiders have dubbed "Bloody Friday." This sentiment was fueled by market data from SoSoValue, which reported net outflows of $536 million—equivalent to KRW 763.7 billion—from spot Bitcoin ETFs. Adding to the market's distress is the fact that since October 10, Bitcoin ETFs have witnessed almost daily withdrawals, with only one day breaking this trend. These consecutive sell-offs have markedly deepened the market's bearish tone.

Rising Pessimism Among Bitcoin Investors

The sustained market downturn has given rise to bleak forecasts regarding Bitcoin's future performance. According to a survey conducted by the blockchain-powered prediction market Polymarket, approximately 68% of respondents now believe that Bitcoin's price will fall below the significant threshold of $100,000 by 2026. This is a sharp increase from the 22% who held this pessimistic view prior to the latest wave of ETF-driven sell-offs. The gloomy outlook has drawn considerable attention, with nearly $1.888 million (KRW 2.7 billion) committed to betting on this scenario.

Further data from an October sentiment survey sheds additional light on the outlook for Bitcoin prices. Among respondents, 34% forecasted that Bitcoin’s price would remain below $100,000, while 14% predicted a dip below $95,000. On the other hand, only a modest 10% expressed optimism, anticipating the price could surpass $130,000 in the foreseeable future.

Industry Skeptics Voice Dire Warnings

The ongoing turbulence in the Bitcoin market has also reignited criticism from longstanding skeptics. Notably, economist and notorious Bitcoin critic Peter Schiff shared his somber perspective on the current state of the market. He cautioned that Bitcoin is likely heading into another phase of prolonged weakness, warning of potential consequences for the broader cryptocurrency industry. Schiff speculated that the coming months could bring heightened instability, marked by bankruptcies, defaults, and workforce reductions across the sector, which would compound the industry's challenges.

Current Bitcoin Valuation Amid Market Volatility

Despite the recent market pressures, Bitcoin registered a slight uptick as of 11:30 a.m. local time on October 19. Trading on Binance saw Bitcoin priced at $106,900, representing a marginal 0.03% gain over the previous day. However, the cryptocurrency remains approximately 15% below its recent peak, reflecting ongoing challenges in reclaiming upward momentum. Meanwhile, on the South Korean cryptocurrency exchange Upbit, Bitcoin was trading at KRW 163.27 million around the same time, indicative of similar trends across global platforms.

Stay Updated on Cryptocurrency Trends

The broader digital asset market continues to experience significant headwinds as a result of major liquidations, investor unease, and persistent ETF outflows. As the industry navigates these turbulent waters, analysts and traders closely monitor price action and investor sentiment to gauge the future trajectory of Bitcoin and other cryptocurrencies.

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