Bitcoin Falls Below $72,000 as ETF Outflows Hit $1.44 Billion

Bitcoin dropped below $72,000 for the first time since August, falling to $71,300 during the US trading session. The decline coincided with $1.44 billion in net outflows from US spot Bitcoin ETFs over five consecutive sessions, according to Farside Investors data.

At press time, Bitcoin traded near $71,369, down 2.91% over 24 hours, per CoinGlass. Ethereum slipped 2.73% to $1,999.53, breaking below the $2,000 level. Solana fell 3.58% to $80.84, XRP dropped to $1.0174, and BNB retreated to $652. Dogecoin lost 5.09%, while NEAR fell 8.86% — the sharpest decline among major altcoins.

What triggered the sell-off?

Two macro developments added pressure before US markets opened.

Nvidia announced that founder and CEO Jensen Huang had resigned from his position and from the board, appointing CFO Colette Kress as interim CEO. Nvidia shares fell roughly 10% in pre-market trading, and Bitcoin followed risk sentiment lower to around $72,400. When US equities opened, Nasdaq losses stayed limited to about 0.35% in the first half hour, and Broadcom and AMD each gained approximately 3%. Bitcoin nevertheless extended losses to $71,300.

US Treasury yields also rose. Cleveland Fed President Beth Hammack said inflationary pressures were spreading more broadly and that monetary policy needed to tighten. The two-year Treasury yield, sensitive to Fed expectations, climbed 7.2 basis points to 4.80% as she spoke.

Tuesday's inflation data continues to feed the rate-hike debate. Consumer prices rose 0.4% month-on-month in October, above the 0.3% forecast. Core inflation, excluding food and energy, rose 0.3% for a third consecutive month. Fed Governor Christopher Waller said this week that further tightening is needed to return inflation to the 2% target.

How much money left the ETFs?

Spot Bitcoin ETFs bled $299.8 million in the last completed session, marking the fifth straight session of net outflows. The cumulative withdrawal across the period reached approximately $1.44 billion.

• BlackRock's IBIT: $269.7 million outflow, the largest of the session
• Grayscale's GBTC: $39.1 million outflow
• Morgan Stanley's MSBT: $9 million inflow
• Spot Ethereum ETFs: $144.8 million net outflow

Combined net outflows across the Bitcoin and Ethereum fund groups totaled $444.6 million for the session.

Where did liquidations hit hardest?

Leveraged long positions absorbed most of the damage. CoinGlass data shows $305.23 million in Bitcoin liquidations over the past 24 hours, of which $266.45 million came from longs. Ethereum saw $126.35 million liquidated, including $104.74 million in long positions.

Solana recorded $23.63 million in liquidations, XRP $12.78 million and Dogecoin roughly $11.17 million. Across those five cryptocurrencies, liquidations exceeded $479 million, with approximately $414 million from long positions. Forced closings of leveraged positions as prices fall can compound selling pressure.

The market now faces a narrow path: sustained ETF inflows or a dovish Fed signal would need to reverse roughly $1.44 billion in five-session outflows before Bitcoin retests resistance above $73,500, last seen this morning.