Crypto bear market coming? Bitcoin falls below $95,000, hitting a six-month low, with ETF single-day outflows reaching $870 million.

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As market expectations for a Fed rate cut in December quickly cooled, risk-off sentiment intensified across risk assets. On Friday, Bitcoin fell to its lowest point in more than six months, with investors withdrawing nearly $900 million from Bitcoin ETFs.

On Friday, Bitcoin briefly dropped to $94,978, the lowest level since May 7. This decline signals a potential third consecutive weekly loss for Bitcoin, with its price having fallen nearly 24% from the peak in early October. Meanwhile, the second-largest cryptocurrency, Ethereum, also fell 1.5%, trading at $3,133.76.

According to media reports, Bitcoin ETFs saw a net outflow of about $870 million on Thursday, marking the second-largest single-day outflow since these products were launched.According to WallstreetCN, on November 13, the crypto fear and greed index plummeted to 15, the lowest level since February this year. The last time the index fell below 20, Bitcoin dropped 25% in the following month.

After experiencing $19 billion in liquidations on October 10, the cryptocurrency market has remained under pressure. This liquidation caused the total market value of all cryptocurrencies to evaporate by over $1 trillion. According to CoinGlass data, liquidations are ongoing, with over $1 billion worth of leveraged crypto positions closed in the past 24 hours.

Amplified Volatility Drives Risk Asset Selloff

The crypto market selloff is highly correlated with other risk assets, but is steeper due to higher volatility. Max Gokhman, Deputy Chief Investment Officer of Franklin Templeton Investment Solutions, said:

"The current selloff is entirely correlated with other risk assets, but the drop in crypto is steeper because its volatility is higher."

He pointed out that until institutional participation extends beyond Bitcoin and Ethereum, crypto's beta coefficient to macro risks will remain high. Market liquidity has also tightened considerably. According to Kaiko data, market depth—the ability to absorb large trades without drastic price swings—has dropped about 30% from this year’s highs.

Meanwhile, due to earlier delays in releasing key economic data caused by the US government shutdown, traders are questioning whether the Fed has grounds for near-term rate cuts, and this reevaluation is putting new pressure on riskier areas of the market.

Augustine Fan, Partner at SignalPlus, said:

"Since President Trump’s inauguration, Bitcoin’s return has turned negative, and the total crypto market cap has completely given up its gains for the year. There is little technical support between current prices and the low of $90,000, and sentiment may remain subdued."

According to Nick Ruck of LVRG Research, in options markets, traders are increasingly positioning for volatility, with rising demand for neutral strategies such as straddles and wide strangles.

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