Key Takeaways
- As bitcoin prices have fallen, spot bitcoin ETFs have seen some $1.3 billion in outflows since Oct. 29, according to data platform SoSovalue; spot ether ETFs experienced outflows of almost $500 million over the same time period.
- The weakness in the world’s most well-known cryptocurrency weighed on major stocks linked to it including MicroStrategy, Coinbase Global and Robinhood.
Red October is spilling into November.
The price of bitcoin, the world’s best-known and most-valuable cryptocurrency, today fell more than 5% to its lowest point—recently trading below $100,000—since hitting its record high over $126,000 in early October. The weakness extends declines that began after what is now called the crypto market’s Black Friday in the middle of last month, which helped pull bitcoin down for the month to mark its first red October since 2018.
Whether those declines will turn into a full-on downturn, which some consider typical for this stage in the coin market cycle, or coax investors back into the mix, remains to be seen. On Tuesday, investors appeared wary. Crypto’s fear and greed index, which is aimed at measuring sentiment in the market, turned to fear yesterday from a neutral position last week, according to CoinMarketCap.
Why This Matters to Investors
Cryptocurrencies tend to be volatile, and sharp declines tend to follow long upward runs. How long recent declines will last remains to be seen, but the price of bitcoin today dropped below $100,000 for the first time in months.
The falling price of bitcoin—the last time it was below $100,000 was in May—comes amid mounting outflows in spot bitcoin ETFs. BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC) and Grayscale Bitcoin Trust (GBTC) collectively saw net outflows of some $1.3 billion since Oct. 29, according to data platform SoSoValue. Roughly $500 million ran out of spot ether ETFs over the same time period.
Altcoins including ether (ETHUSD) and solana (SOLUSD) were hit harder, falling 8% or more. The weakness also dragged on major bitcoin-linked stocks including MicroStrategy (MSTR), Coinbase Global (COIN), and Robinhood (HOOD) closed at least 6% lower and continued to decline after the market’s close.
Some bitcoin bulls have lately leaned in. Strategy, cofounded by bitcoin evangelist Michael Saylor, on Monday said it acquired 397 bitcoin for an average purchase price of $114,771 between Oct. 27 and Nov. 2.
This article has been updated since it was first published to reflect updated market action.
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