Crypto ETFs See Outflows as Bitcoin Drops Below $110K Mark

TLDR

• Bitcoin dropped 5% in 24 hours, trading at $109,800 as Asia markets opened.
• US spot bitcoin ETFs saw a weekly outflow averaging 281 BTC.
• Solana fell 8% to $186 despite $116M in ETF inflows.
• Long-term holders moved 104K BTC monthly to exchanges, worth $293M daily.

Bitcoin lost ground as U.S. ETF demand weakened and Fed Chair Jerome Powell’s cautious stance on rate cuts shook market confidence. The broader crypto market also saw declines, while Asian equities rose after signs of easing trade tensions between Washington and Beijing.

Bitcoin Drops Below $110K as ETF Flows Reverse

Bitcoin traded around $109,800 as the Asian markets opened on Friday, reflecting a 5% drop over the past 24 hours. The fall followed comments from Federal Reserve Chair Jerome Powell, who said future rate cuts are not guaranteed.

These remarks changed market expectations. According to Polymarket data, the chance of a December rate cut fell to 71% from 90% earlier. The odds of no rate move rose to 26%, which weighed on demand for risk assets such as crypto.

CryptoQuant reported a sharp fall in investor interest in bitcoin. U.S.-based spot bitcoin ETFs saw an average weekly outflow of 281 BTC. This is among the lowest figures since April. Ether inflows have slowed to nearly zero, and the CME futures basis has reached multi-year lows.

Long-Term Holders Sell as Demand Softens

Data from Glassnode shows that long-term holders are selling more bitcoin. On-chain metrics suggest that about 104,000 BTC are being moved to exchanges each month. These transfers are valued at nearly $293 million per day.

Bitcoin continues to trade below the average cost basis for short-term holders, which is around $113,000. This adds pressure on those who bought recently, possibly leading to more selling. Coinbase premiums are also flat, showing a lack of retail and institutional buying.

Sentiment remains weak even though the broader market showed signs of activity. Traders are more cautious after Powell’s tone signaled that further policy easing is uncertain.

Solana ETFs Launch Amid Market Downturn

Solana dropped about 8% to $186 on Thursday. This erased its year-over-year gains despite the launch of U.S.-listed Solana spot ETFs. The decline followed large on-chain transfers linked to Jump Crypto and Galaxy Digital, raising concerns of portfolio rebalancing.

Bitwise’s BSOL fund raised $116 million in its first two days. Grayscale’s GSOL also saw inflows of $1.4 million. However, these figures were not enough to support the price. Solana’s decline shows that ETF launches alone are not boosting sentiment in the current environment.

Weak demand, rising exchange transfers, and cautious trading behavior continue to limit gains. The market appears to be in a wait-and-see mode as investors assess macro conditions.

Broader Markets React to Fed and Global Signals

Ether also declined 1.8% to around $3,850. Like bitcoin, it has seen slowing ETF flows and lower futures demand. Investors are taking profits as rate uncertainty makes them more risk-averse.

Gold dropped by $16.50 to $3,984.70, and silver traded at $47.89. These declines followed Powell’s comments, which pushed U.S. Treasury yields higher and reduced the appeal of non-yielding assets.

Asian equities moved in the opposite direction. Japan’s Nikkei 225 rose over 1% to a new record. This came after news that U.S. and Chinese officials, including former President Trump and President Xi, agreed to reduce trade tensions involving South Korea.

Despite crypto’s weakness, global investors continue to monitor macroeconomic data. When the U.S. government reopens and more data becomes available, traders expect more clarity on interest rate policy. Until then, markets may remain cautious.

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