Market uncertainty weighs on Bitcoin
Bitcoin extended its losing streak for the fourth consecutive day, declining 0.9% over the past 24 hours to trade around $111,678. This downward movement reflects growing investor caution as markets prepare for key U.S. inflation data. Traders seem unsure about the Federal Reserve’s next policy direction, creating broad risk-off sentiment that’s affecting Bitcoin and other risk assets.
I think the timing is particularly interesting here. We’re seeing this pullback just as investors are trying to gauge whether the Fed will take a more hawkish or dovish stance. This uncertainty appears to be the main driver behind the current selling pressure.
ETF outflows and liquidations add pressure
The market faced significant headwinds from ETF outflows and large-scale liquidations. U.S.-listed Bitcoin ETFs recorded $466 million in outflows recently, outweighing the smaller inflows from earlier in the week. This comes after Monday’s massive $1.7 billion liquidation event, one of the largest we’ve seen in 2025.
Profit-taking seems to be accelerating as investors reduce their Bitcoin exposure. The broader market cooldown is making everyone more cautious, perhaps too cautious in some cases. But then again, with Friday’s $22.6 billion Bitcoin futures options expiry approaching, the caution might be warranted.
Historically, Bitcoin tends to experience selling pressure before large expirations as leveraged positions unwind and traders hedge their risk. It’s possible we could see some relief once this expiry passes and the broader uncertainty clears up.
Technical indicators signal weakness
From a technical perspective, Bitcoin’s chart isn’t looking particularly strong right now. The price has fallen significantly below its September 19 peak near $117,000, forming a pattern of lower highs and lower lows – that classic bearish structure that traders watch for.
The RSI has dropped to 42.30, which suggests waning buying interest. Meanwhile, the MACD has flipped bearish with a growing negative histogram. Volume remains muted, indicating indecision from both bulls and bears about the next major move.
If Bitcoin fails to hold above the $110,000 support level, we could see further declines toward $108,000. However, a recovery above $113,500 might help spark a price rebound. The key levels to watch are pretty clear at this point.
What’s interesting to me is how all these factors are converging – the macroeconomic uncertainty, the ETF flows, the technical setup. It creates a situation where Bitcoin’s near-term direction feels particularly difficult to predict. The market seems to be waiting for clearer signals from both the inflation data and how the options expiry plays out.
Trading volume staying low suggests many participants are sitting on the sidelines, waiting for more clarity before making significant moves. This could mean we’re in for some sideways action until we get through these key events.
