Crypto Markets Slide as Bitcoin ETF Outflows Hit $166 Million

Bitcoin drops to $78,000 as spot ETFs see $166.8M in outflows. Oil prices and high bond yields spark risk-off sentiment ahead of Fed decision.

Investors are aggressively de-risking as oil prices climb above $100, U.S. bond yields remain elevated, and Bitcoin ETF outflows accelerate. Despite the recent sell-off, the Fear and Greed Index holds steady at 70 points, remaining in “Greed” territory—a sign that market sentiment has not yet shifted toward extreme caution.

Rising energy costs are fueling fears that inflation could persist, potentially tying the hands of central banks. Market participants are now focused on Thursday’s U.S. Producer Price Index (PPI) and Friday’s Consumer Price Index (CPI) data, both of which will set the stage for next week’s Federal Reserve meeting.

Bitcoin Pulls Back as Altcoin Losses Deepen

At the time of writing, Bitcoin (BTC) is trading at $78,094, marking a 1.99% decline over the last 24 hours. Ethereum (ETH) has slipped 1.95% to $2,472, while BNB has significantly underperformed with a 4.86% drop to $718.72.

The pressure is even more pronounced among major altcoins. XRP fell 4.10% to $1.38, Solana (SOL) lost 3.57% to trade at $101.17, and Hyperliquid (HYPE) retreated 3.84% to $83.25. Dogecoin (DOGE) emerged as one of the weakest large-cap performers, tumbling 6.41% to $0.0853.

Zcash (ZEC) also saw a minor daily decline of 1.76% to $1,221, though it remains a notable exception on the weekly timeframe with gains exceeding 47%.

Bitcoin ETFs Record Second Consecutive Day of Outflows

Institutional flows signal a cooling of demand. Data from FarSide Investors for September 9 shows a net outflow of approximately $120.2 million from U.S. Bitcoin funds, following a negative flow of $46.6 million on September 8.

The largest exit during the last session came from ARKB with $78 million, followed by GBTC at $27.2 million and IBIT at $19.5 million. The only fund to report an inflow was MSBT, which added $4.5 million.

In total, Bitcoin ETFs have lost roughly $166.8 million over the last two sessions, a sharp reversal from the $730.8 million in inflows recorded on September 3 alone.

Ethereum, Solana, and XRP Attract Capital

The trend for other crypto ETFs tells a different story. Ethereum funds recorded $34.7 million in inflows on September 9. BlackRock’s ETHA attracted $9.7 million, ETHB saw $22.9 million, and TETH added $2.1 million.

Solana ETFs reported $11.2 million in inflows, entirely through Bitwise’s BSOL, according to the data provided. According to Coinglass, spot XRP exchange-traded funds pulled in $12.29 million, including $9.30 million for the Bitwise XRP ETF and $2.98 million for the Grayscale XRP Trust ETF.

Hyperliquid remains on the opposite side of the market. HYPE ETF products registered $5.3 million in net outflows, following a loss of $13 million the previous day.

Liquidations Surpass $350 Million

Total liquidations over the last 24 hours have reached approximately $353.7 million. Long positions bore the brunt of the volatility, accounting for $278.6 million, compared to just $75.1 million in short liquidations.

Open interest contracted by nearly 5% to $412.1 billion, while derivatives trading volume rose by 8.81% to $787.9 billion. The combination of rising volume, falling open interest, and dominant long liquidations suggests a rapid deleveraging process is underway.

The next major test for Bitcoin will be whether buyers can defend the $78,000 zone and eventually push the price back above the psychological $80,000 barrier. However, the macroeconomic backdrop remains the primary risk: oil prices above $100 and high bond yields are maintaining inflationary pressure just as the market awaits critical U.S. data and the Federal Reserve’s next move.