Bitcoin slips below $80,000 as ETF outflows and Fed caution weigh on prices
In brief
- Bitcoin touched $79,332 before recovering to $80,240, down 2.5% on the week, per CoinGecko.
- U.S. spot Bitcoin ETFs saw outflows of $635.5 million Thursday and $137.9 million Friday, per SoSoValue.
- HashKey's Tim Sun flagged $75,000 as the key support level if prices fall further.
- Algoz's Stephen Wundke said Bitcoin needs to hold $82,000 to support the bull case.
Bitcoin's still about 36% below its all-time high of $126,080, based on the same CoinGecko figures.
ETF flows turn negative again
The ETF side didn't help. U.S. spot Bitcoin ETFs logged $635.5 million in net outflows on Thursday, according to SoSoValue, erasing most of the gains from a three-day run of inflows. Another $137.9 million left on Friday. The funds still ended the week up about $301 million (snapping a two-week losing streak), but they're down roughly $314 million for October, per SoSoValue.
What analysts are watching
Tim Sun, a senior researcher at HashKey, told Decrypt the drop was primarily driven by a broader correction in global risk assets, with skepticism toward AI-related tech stocks a major factor. He said spot ETF outflows and the unwinding of leveraged positions further amplified the downward pressure.
"Investors are not necessarily questioning the long-term prospects of artificial intelligence, but rather whether current elevated valuations can be justified by future earnings and cash flows," Sun told Decrypt
Sun said he sees $75,000 as a key support level to watch if Bitcoin falls further. He also expects volatility to stay elevated.
Daniela Hathorn, senior market analyst at Capital.com, said Bitcoin had come under pressure alongside tech stocks. In her view, the Fed's Wednesday decision and major tech earnings could prove as important for Bitcoin as developments inside the crypto market itself. A more hawkish Fed could strengthen the dollar and weigh on risk assets, she said.
The $82,000 line
Stephen Wundke, strategy and revenue director at quantitative investment firm Algoz, called $80,000 a psychologically important level. He said a break below it could be misleading, though, given low weekend trading volumes.
What worries him more? A broader decline in trading volumes as investors pull out of altcoins and park funds in stablecoins.
Wundke said Bitcoin needs to hold the $82,000 level (the level it launched rallies from in August and September) to support the bull case. If it stays below that mark, he said, it could see a broader pullback in the coming weeks while macro uncertainty persists.
Frequently asked questions
What price levels are analysts watching for Bitcoin?
HashKey senior researcher Tim Sun said he sees $75,000 as a key support level if Bitcoin falls further. Algoz's Stephen Wundke said Bitcoin needs to hold $82,000, the level it launched rallies from in August and September, to support the bull case.
How much money left spot Bitcoin ETFs this week?
According to SoSoValue, U.S. spot Bitcoin ETFs saw $635.5 million in net outflows on Thursday and $137.9 million on Friday. The funds still ended the week up about $301 million but remain down about $314 million for October.
