Bitcoin slides below $70K amid ETF outflows and extreme fear sentiment

Bitcoin slides below $70K — Bitcoin fell below $70,000 on Friday, extending a weekly decline as institutional outflows and thin liquidity pressured the market.

The Crypto Fear & Greed Index dropped to 20, marking its lowest level in over four months and entering “extreme fear” territory. Vikram Subburaj, CEO of Giottus, attributed the weakness to institutional outflows, tightening crypto liquidity, and expectations of a December Federal Reserve interest rate hike.

Analysts at 10x Research noted Bitcoin’s divergence from U.S. equities, with the cryptocurrency falling 5.9% from November 5 to 12 while the Nasdaq 100 gained 6.4%. They suggested Bitcoin was trading more in line with gold and responding to rising Treasury yields and a stronger U.S. dollar.

The selloff coincided with sustained outflows from U.S. spot Bitcoin ETFs. BlackRock’s iShares Bitcoin Trust recorded over $2 billion in net outflows across nine consecutive sessions through Wednesday. Market infrastructure firm Talos warned that thin order-book liquidity and elevated leverage leave the market vulnerable to sharp volatility.