The price of Bitcoin has experienced another decline. This drop coincides with increasing investor caution as they anticipate U.S. inflation data, alongside rising ETF outflows and significant liquidations.
Summary
- Bitcoin is currently priced at $111,678, reflecting a 0.9% decrease for the day.
- The leading cryptocurrency’s drop occurs in advance of U.S. inflation data, creating uncertainty among investors.
- Exchange-traded funds associated with Bitcoin have recently seen outflows totaling $466 million.
- If the price of BTC falls below $110,000, the next support level is at $108,000.
The Bitcoin price continues its decline for the fourth straight day, losing 0.9% over the last 24 hours and trading at $111,678, as per data from crypto.news.
This downturn is indicative of growing investor apprehension as markets prepare for crucial U.S. inflation data, with traders uncertain about the Federal Reserve’s potential stance—hawkish or dovish. This uncertainty has fostered a general risk-off attitude, prompting many to limit their exposure to Bitcoin (BTC) and other riskier assets.
Bitcoin price faces tension due to notable ETF outflows and liquidations
Following a substantial $1.7 billion liquidation on Monday—one of the most significant for 2025—investors are increasingly taking profits and reducing their Bitcoin exposure. This trend is exacerbated by a broader market cooldown, leading to heightened caution among investors.
Furthermore, there has been a marked rise in ETF outflows, as U.S.-listed funds tracking BTC recorded $466 million in outflows recently, overshadowing the minor inflows seen earlier in the week.
Investors are also preparing for Friday’s $22.6 billion Bitcoin futures options expiry. Traditionally, Bitcoin tends to face selling pressure leading up to large expirations, as leveraged positions are unwound and traders mitigate risk. A recovery rally may ensue once the expiry concludes and uncertainty diminishes.
Technical indicators suggest weak momentum
From a technical standpoint, Bitcoin’s price is now well below its peak around $117,000 from September 19, establishing a descending pattern of lower highs and lower lows, a textbook bearish formation. The RSI has declined to 42.30, indicating a decrease in buying interest, while the MACD has turned bearish, showing an expanding negative histogram.
Trading volume remains low, reflecting indecision from both bulls and bears. Should Bitcoin fail to maintain support above $110,000, further declines toward $108,000 are likely. Conversely, a recovery above $113,500 could potentially trigger a price rebound.
