When Bears Strike: BTC and ETH Drop Under ETF Selling Pressure

Cryptocurrency markets are grappling with mounting headwinds as Bitcoin and Ethereum face renewed selling pressure this week. Recent data reveals a concerning shift in ETF fund flows, with spot ETFs experiencing significant outflows that mirror broader risk-off sentiment across digital assets.

ETF Outflows Accelerate Downside Pressure

The capital exodus has been particularly pronounced in the Bitcoin ETF space, which logged approximately $330 million in net outflows over the past seven days. Ethereum ETFs followed suit with $11 million in net redemptions. These outflows coincide with large institutional transactions, including substantial deposits of both BTC and ETH to major trading venues—a move typically associated with preparation for potential liquidation.

As of the latest snapshot, Bitcoin is trading at $92.77K with a modest 24-hour gain of 1.50%, while Ethereum holds steady at $3.15K with a 0.30% daily increase. Yet price action alone masks the underlying weakness, as derivative metrics and on-chain signals suggest deeper structural challenges.

Technical Indicators Flashing Bear Market Warnings

Market analysis points to a troubling pattern emerging in technical indicators. The Bitcoin Combined Market Index has dipped below equilibrium levels, a red flag for trend reversal. While current readings haven’t reached historical capitulation zones—where markets typically bottom—the directional bias is unambiguously bearish.

This combination of deteriorating fund flows, institutional selling pressure, and weakening technical structures suggests the market may be transitioning into a sustained bear phase. Traders watching for the next significant support level should monitor whether Bitcoin can stabilize above key psychological levels or if additional selling cascades will accelerate the drop further.