Bitcoin slipped further below the $100,000 threshold as a wave of risk aversion hit markets, prompting investors to withdraw nearly $900 million from Bitcoin-focused funds. The leading cryptocurrency dropped as much as 2.8% to under $96,000 on Friday before recovering slightly, leaving it over 20% below its early October record high.
The broader crypto market continues to feel pressure following $19 billion in liquidations on October 10, which erased more than $1 trillion from the total market value of cryptocurrencies, according to CoinGecko. Liquidations remain heavy, with over $1 billion in leveraged crypto positions liquidated in the past 24 hours, per CoinGlass data. Bitcoin ETFs also experienced around $870 million in outflows on Thursday, marking the second-largest daily withdrawal since their inception.
After a brief rebound in U.S. equities following the end of the government shutdown, gains quickly faded amid delays in key economic data. Traders are questioning whether the Federal Reserve can justify near-term rate cuts, intensifying pressure on risk assets. Market depth has declined about 30% from this year’s highs, reflecting thinner liquidity. In options markets, demand for neutral volatility strategies like strangles and straddles is rising as traders prepare for continued swings.
