Bitcoin, Ethereum Drop As Investors Pull Millions From ETFs: Analyst Spots 'Big Correction', Pencils Key BTC Support Level

Bitcoin and Ethereum exchange-traded funds (ETFs) experienced substantial outflows on Thursday, ahead of the key personal consumption expenditure (PCE) data, as volatility in the cryptocurrency markets increased.

Bitcoin prices fell 2.2% to $109,279, Ethereum was down 1.9% to $3,931.77, and XRP prices declined 3.5% to $2.75, according to CoinGecko data. Among other tokens, BNB fell 4.9% and Solana was down 4.4%.

According to SoSoValue data, Bitcoin spot ETFs logged net outflows of $258.46 million, led by outflows of $114.8 million in Fidelity’s FBTC ETF. Ethereum ETFs experienced their fourth consecutive day of outflows, with investors withdrawing over $251.2 million.

The dollar index, which compares the greenback against a basket of other currencies, was on course for its most significant weekly gain in two months as the U.S. gross domestic product topped expectations.

According to CME Group’s FedWatch tool, about 87% traders have priced in a 25 basis point rate cut during the Federal Reserve’s next policymaker meeting. If the uptick in inflation exceeds expectations, the U.S. central bank may opt not to implement a rate cut in October.

“The forthcoming core PCE Data is the biggest event this week. As the Fed’s preferred gauge, a number hotter than the 2.9% year-over-year forecast could cement a hawkish stance, immediately selling off assets like crypto. Conversely, a lower number could inject major upside momentum, a risk all market participants are currently hedging,” CoinSwitch analysts said.

Retail sentiment on Stocktwits about Bitcoin was in the ‘bearish’ territory at the time of writing.

“A big correction [is] taking place,” investor Michael Van De Poppe said about Bitcoin. “We'll likely sweep the low sub $107K before we reverse. However, 90% of the correction is over. Good times are ahead.”

Further adding to the crypto markets' volatility are the options slated to expire on Friday. According to Deribit data, nearly $23 billion worth of Bitcoin and Ethereum options are set to expire.

Also See: Cipher Mining Stock In Focus After Pricing Upsized Convertible Bond Offering — Analyst Says ‘They Scared A Lot Of Beginner Investors’

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