Bitcoin slides 10% from record high amid US ETF outflows

Bitcoin experienced a sharp pullback on Friday, dropping over 10% to a low of $95,234, retreating from its all-time high of just above $108,000 earlier this week. The decline is attributed to reduced optimism for looser US monetary policy, which has dampened speculative enthusiasm across cryptocurrencies.

Record outflows from Bitcoin ETFs

US Bitcoin exchange-traded funds suffered a record outflow of $680 million on Thursday, ending a 15-day streak of continuous inflows, according to Bloomberg data. The reversal highlights a shift in market sentiment after a sustained bullish period.

Market correction typical in crypto bull runs

Strahinja Savic of FRNT Financial noted that such corrections are “pretty typical” in crypto bull markets. Similarly, QCP Capital attributed the selloff to the market’s “overly bullish” positioning, suggesting the pullback could be a healthy rebalancing.

Federal Reserve dampens risk appetite

The Federal Reserve’s hawkish stance this week, which signaled fewer rate cuts for 2025 than previously anticipated, has weighed on risk assets, including cryptocurrencies. Bitcoin’s rally had surged nearly 50% since Donald Trump’s pro-crypto election victory on Nov. 5, but the Fed’s announcement cooled the momentum.

Edward Chin of Parataxis described the drop as “year-end profit-taking” rather than a reaction to any fundamental triggers.

Technical outlook warns of caution

Chris Weston, head of research at Pepperstone Group, advised caution in the short term, noting that while a collapse in Bitcoin’s price is unlikely, the momentum has clearly shifted. “The buyers have lost dominance and control of the tape,” Weston wrote.

Other cryptocurrencies like Ether and Dogecoin also experienced declines, further underscoring the broader cooling in the digital asset market.