Bitcoin experienced a sharp decline, falling to $105,800 at the time of writing, marking a 4.5% daily drop and extending a week-long correction. This sell-off was driven by a combination of institutional outflows from U.S. spot Bitcoin ETFs, rising macroeconomic tensions, and critical technical breakdowns.
According to CoinMarketCap data, Bitcoin's market capitalization now stands at $2.1 trillion, with daily trading volume surging 38% to nearly $95 billion, indicating heightened volatility. The most significant pressure came from ETF markets, where U.S. spot Bitcoin ETFs recorded $536 million in net outflows on October 16, the largest daily redemption since August. Major withdrawals were led by ARKB ($275 million) and FBTC ($132 million), with analysts attributing this to institutional profit-taking after Bitcoin's 58% year-to-date rally.
Technically, Bitcoin's slide below the $108,000–$109,000 support range triggered automated sell orders. The RSI reading of 37 indicates weak momentum, while the MACD histogram at -1,339 signals ongoing bearish divergence. Additionally, escalating U.S.–China trade tensions prompted traders to rotate approximately $19.4 billion into stablecoins, draining liquidity from crypto markets. The Crypto Fear & Greed Index dropped to 28, reflecting Extreme Fear and underscoring the sentiment-driven sell-off.
Over the past week, Bitcoin has declined 10%, and it now sits 14% below its all-time high of $126,080. Trading activity intensified, with 24-hour volume rising 25% to $83.1 billion and futures volume up 40% to $127.6 billion, though open interest remained flat at $72.8 billion, showing trader caution. If the $108,000 support fails, analysts warn of a potential dip toward $100,000, though some see stabilization possible due to long-term holder demand.
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