Bitcoin ETF Outflows Hit 105-Day High: BTC Drops Below $79K Amid Inflation Data

Bitcoin tumbled below $79,000 following a sharp one-day outflow of $635 million from US spot Bitcoin ETFs, marking the largest single-day exit in over three months. The selloff coincided with incoming inflationThe rate at which prices rise across an economy. data that surprised to the upside, reigniting concerns about Federal Reserve tightening and the macro environment's impact on risk assets. The sequential drop in inflows suggests institutional appetite has cooled even as retail sentiment remains mixed.

Multiple factors compounded the downward pressure. Minneapolis Federal Reserve President Kashkari reiterated that inflationThe rate at which prices rise across an economy. remains too high, signaling hawkish rhetoric at a time when some market participants had positioned for a dovish pivot. Simultaneously, order book data showed heavier overhead resistance at recent highs, indicating weak conviction among buyers. Funding rates turned positive, but cumulative volume deltaHow much an option's price changes per $1 move in the underlying. (CVD) showed divergence with price, suggesting liquidity traps were being loaded.

Crypto traders are watching two critical support zones: $79,000 and the 50-day moving averageAverage price over a defined period; smooths noise to show trend. around $76,000. If Bitcoin fails to hold $79K, some traders expect a retest toward the $70-69K zone, where a CME gap exposes roughly $12 billion in leveraged longs to liquidation. Conversely, advocates argue the Fear and Greed Index sits at 34, a level seen in late 2024 before a 40% rally over six weeks. The debate reflects deep uncertainty over whether the recent pullback represents capitulation or the early stages of a deeper correction.

Market structure on the daily chart shows Bitcoin has spent nine days above a consolidation range without achieving clean breakout momentumThe empirical fact that winners keep winning over the medium term., raising questions about follow-through. Solana and altcoins have outperformed BTC intraweek, a rotation pattern that historically signals either institutional profit-taking at the top or preparation for a fresh impulse move.