Crypto Markets Bleed as Bitcoin and Ethereum Face Heavy Sell-Off

Bitcoin holds $60,300 while Ethereum drops below $1,600 amid $691M in spot BTC ETF outflows and 'extreme fear' market sentiment.

A wave of selling has swept through nearly the entire cryptocurrency sector, leaving Bitcoin struggling to hold the $60,300 level while Ethereum has tumbled below $1,600. The total market capitalization of all crypto assets has contracted by more than 2%.

Market sentiment remains deeply negative. The Fear and Greed Index has plummeted to just 16 points, firmly placing investor outlook in the “extreme fear” zone. Meanwhile, the Altcoin Season Index sits at 44 points, indicating that capital remains concentrated in Bitcoin rather than rotating into higher-risk alternative tokens.

Downward pressure intensified following the release of the Federal Reserve’s preferred inflation gauge, the PCE index. Higher-than-expected figures have dampened hopes for a swift interest rate cut, reintroducing caution to the financial markets. This macroeconomic climate traditionally restricts demand for high-risk assets, including cryptocurrencies.

Spot ETFs Record Sharpest Outflows in Weeks

The primary catalyst behind the recent sell-off was the massive withdrawal of funds from U.S. spot crypto ETFs. Spot Bitcoin funds recorded a net daily outflow of approximately $691.7 million, marking one of the weakest trading sessions in recent weeks.

BlackRock’s IBIT and Fidelity’s FBTC saw the most significant withdrawals, though negative flows were reported across nearly all leading products in the market. Data from FarSide Investors reveals that institutional investors opted to reduce their overall exposure to BTC rather than simply rotating capital between different funds.

A similar trend played out in spot Ethereum ETFs, which ended the day with net outflows of roughly $81.9 million. Funds managed by BlackRock and Grayscale faced the heaviest pressure; isolated positive flows into smaller products were insufficient to offset the broader negative balance.

The weakness extended beyond the two largest assets. Solana ETFs saw net outflows of approximately $3.9 million, while funds tracking Hyperliquid recorded a negative flow of about $4.6 million. In contrast, the newly launched XRP ETFs saw virtually no new inflows or withdrawals, suggesting a wait-and-see approach among those investors.

Ethereum Leads the Decline Among Major Assets

Price action reflected the diminishing appetite for risk. ETH emerged as one of the weakest performers among large-cap cryptocurrencies, dropping nearly 5% in the last 24 hours and over 7% on the week. At the time of writing, the leading altcoin is trading at $1,570.

XRP has lost more than 3%, while Dogecoin and Stellar have suffered even deeper percentage declines.

Bitcoin has proven relatively more resilient, declining by approximately 2.4%. This reinforces its role as the preferred asset during periods of heightened uncertainty within the crypto sector. Smaller tokens stayed under heavier pressure as investors moved to limit exposure to more volatile market segments.

Market analysts suggest the current movement is likely a combination of profit-taking, institutional portfolio rebalancing, and a reaction to the unfavorable macroeconomic environment, rather than a fundamental shift in the long-term outlook for digital assets.

Investor attention is now fixed on upcoming U.S. macroeconomic data and daily ETF flow reports, which have become critical indicators of institutional demand. If net outflows persist in the coming sessions, pressure on Bitcoin, Ethereum, and other leading assets will likely remain elevated.

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