Bitcoin News Today: Bitcoin ETFs Bleed $870M as LTH Sales Push Price Toward $80k

Bitcoin traders are gripped by fear as the cryptocurrency's price spirals toward a potential free fall to $80,000, with market indicators and on-chain data painting a dire picture of capitulation. The Fear and Greed Index, a key sentiment barometer, plummeted to 16 on Friday, nearing its early March lows, signaling an acute shift toward panic amid widespread expectations of further downside. Bitcoin's price has fallen below $100,000 for the first time since June 22, with over 88% of open positions skewed toward long bets-a positioning now seen as dangerously overbought according to market analysis.

The selloff has been exacerbated by massive outflows from U.S.-listed Bitcoin exchange-traded funds (ETFs). CoinDesk reported that spot Bitcoin ETFs faced net outflows of $870 million on Thursday, the second-largest single-day withdrawal since their launch. Ether ETFs also saw $259.7 million in outflows, compounding the downward pressure. These withdrawals coincide with a broader risk-off mood, as Bitcoin and ether trade at 2.8% and 2.3% discounts, respectively, while altcoins like Solana and XRP have also plummeted.

On-chain metrics confirm the bearish turn. CryptoQuant's Bull Score Index, which measures market optimism, has collapsed from 80 in early October-when Bitcoin hit a record $126,000-to 20 as of Thursday. Three key factors have accelerated the downturn: the "Big Liquidation" event on October 10 that drained upward momentum, a contraction in spot demand since October 8, and a slowdown in stablecoin liquidity growth. Long-term holders (LTHs) have sold 815,000 BTC in the past 30 days, the highest level since January 2024, further deepening the bearish narrative.

Technical indicators suggest a critical juncture. Bitcoin has closed below its 365-day moving average ($102,000) multiple times since October, a threshold that has historically acted as a support level during this bull cycle. Analysts warn that failing to reclaim this level could trigger a deeper correction. The 50-week SMA, another key benchmark, is now at risk of invalidating the two-year uptrend that has defined Bitcoin's rally since 2023.

Market participants are also bracing for a potential bear market confirmation. 10X Research noted that weakening ETF inflows, sustained selling by LTHs, and muted retail participation align with bearish conditions. Meanwhile, Bitcoin's 30-day options delta skew at Deribit remains at 10%, above the neutral 6% level but far below the 16% peak in early November, indicating lingering but not extreme fear.

The crypto market's pain is not isolated to Bitcoin. Ethereum faces resistance at its 200-day exponential moving average ($3,660), with key whales accumulating ETH despite the price slump. A major Ethereum whale has added $1.38 billion in ETH over the past 10 days, leveraging borrowed funds to expand its position. However, spot Ethereum ETFs have recorded net outflows, suggesting institutional capital is shifting to Bitcoin.

As the bearish narrative solidifies, analysts are watching for signs of capitulation. CryptoQuant's research highlighted that short-term holders (STHs) have incurred losses of 12.79%, nearing a point where panic selling could accelerate. The 6–12 month holder cost basis near $94,000 may offer a temporary floor, but a sustained break below this level would likely confirm a broader market collapse.