Bitcoin Drops Below $95K in Deepest Weekly Drawdown Since May

The world's largest cryptocurrency traded at $95,158 on Monday, down 10.5% over seven days after briefly touching $93,961 – its lowest level since early May. The decline erased gains from a rally that had pushed Bitcoin to $125,000 in January, with the token now trading 24% below that peak.

Ethereum dropped 12% to $3,181 while Solana shed 16.5% to $140.33, underperforming Bitcoin as investors fled higher-risk altcoins. Total cryptocurrency market capitalization currently stands at $3.24 trillion, per Coinmarketcap data.

The selloff intensified as exchange-traded funds tracking digital assets recorded their worst weekly outflows in months. Bitcoin spot ETFs saw $1.1 billion in net redemptions from Nov. 3-7, while Ethereum products posted $728 million in outflows, according to fund flow data. The exodus marks the second consecutive week of billion-dollar withdrawals from Bitcoin ETFs.

The Crypto Fear and Greed Index, which measures market sentiment, plunged to 17, indicating extreme fear and the lowest reading since the March banking crisis.

Onchain data revealed the extent of losses among recent buyers. Some 99% of investors who purchased Bitcoin over the past five months are now holding at underwater positions, according to blockchain analytics. The metric typically signals late-stage corrections but has historically preceded major rebounds when sentiment reaches such depressed levels.

Long-term holders accelerated selling throughout the week even as retail investors attempted to buy the dip, a pattern that often characterizes the final phase of prolonged downturns. Bitcoin's market-value-to-realized-value ratio fell to eight-month lows, approaching levels that have historically marked buying opportunities.

The cryptocurrency's troubles mirrored broader financial market stress. U.S. equities suffered steep losses last week as investors reassessed rate cut expectations following cautious commentary from Federal Reserve officials. The central bank has signaled reluctance to ease policy prematurely despite signs of cooling in some economic sectors.

Solana bucked the trend in institutional flows, with its ETFs attracting $46 million in fresh capital – the third consecutive week of inflows even as prices declined. The divergence suggests selective positioning by institutional investors seeking exposure to alternative blockchain platforms.

Options markets reflected heightened anxiety, with demand surging for put contracts protecting against further declines to $95,000. Trading volumes remained elevated at $24 billion for Bitcoin ETFs despite the outflows, suggesting active repositioning rather than wholesale abandonment.

Some analysts pointed to emerging signs of stabilization. Stablecoin deposits to exchanges increased late in the week, typically an early indicator that investors are preparing to deploy capital. Social media metrics showed Bitcoin discussion reaching four-month highs during the selloff – a contrarian signal that has preceded reversals during past capitulation events.

The coming week brings a heavy slate of economic data, including Federal Reserve meeting minutes and employment figures, which could drive additional volatility across risk assets. Any stabilization in ETF outflows would provide the clearest signal that institutional selling pressure has subsided, market participants said.