Bitcoin Ethereum price drops as US spot crypto ETFs shed $530M

Cryptocurrency markets faced a sharp downturn on Thursday as US spot Bitcoin and Ether exchange-traded funds shed a combined $530 million. The reversal in investor sentiment erased gains that had followed recent US political developments. Market participants closely monitoring the bitcoin ethereum price noted significant capital withdrawals across multiple leading fund products.

According to SoSoValue data, Bitcoin exchange-traded funds accounted for $430 million in net outflows, while Ether funds lost approximately $100 million. This sharp correction came immediately after a positive session on Wednesday, which had recorded $128 million in combined inflows when Bitcoin briefly climbed above $80,000 following Democratic victories in the US midterm elections.

Fidelity’s Wise Origin Bitcoin Fund led the single-day withdrawals with roughly $200 million in outflows, reversing course after attracting about $237 million the previous day according to Farside Investors data. Meanwhile, BlackRock’s iShares Bitcoin Trust recorded $105 million in net outflows, extending its consecutive outflow streak to five sessions with total withdrawals exceeding $1 billion since October 30. Following the closing bell on Thursday, total year-to-date net outflows for Bitcoin exchange-traded funds stood at approximately $510 million.

Spot Bitcoin and Ether exchange-traded funds lost a combined $530 million during Thursday's market drop.

The cryptocurrency sell-off coincided with a steep decline in broader financial equities. The tech-heavy Nasdaq Composite plunged 5.5% on Thursday, marking its largest single-day decline since April 2025 according to Reuters, while Bitcoin fell back below the $76,000 threshold.

Market Outlook and Expert Views

Analyst commentary on the broader market correction varied across platforms. Crypto analyst Michaël van de Poppe stated on X on Thursday that Bitcoin could find a near-term bottom on Friday, potentially after dipping below $75,000, while pointing directly to the severity of the Nasdaq drop. He noted that he expects both the Nasdaq and Bitcoin to bottom soon, possibly following a sweep of the $75,000 level.

Addressing macroeconomic concerns, Dean Lyulkin, CEO of Cardiff and founder of investment publication The Dean’s List, compared current conditions to historical financial crises. In comments shared with Cointelegraph, Lyulkin argued that the global financial crisis was not caused by Democrats taking Congress, pointing out that the Federal Reserve had already raised interest rates substantially and the housing market was weakening prior to that event. While acknowledging existing vulnerabilities in commercial real estate, private credit, and potential excessive artificial intelligence spending, Lyulkin suggested that current household balance sheets and the banking system remain considerably stronger today.

Why it matters

The sudden outflow from digital asset investment products highlights the direct correlation between cryptocurrency valuations and traditional macroeconomic indicators, including major stock indices and interest rate expectations. These market movements affect institutional portfolios and retail participants tracking crypto asset allocations globally.

Such liquidity shifts demonstrate how rapidly sentiment can reverse following political and economic catalysts, impacting market stability across digital currency exchanges and investment vehicles alike.