Bitcoin’s price slipped under the $77,000 threshold on Monday after a massive exodus of funds from U.S. spot Bitcoin ETFs, which saw over $1 billion in net outflows over the past week. This marks a dramatic shift from previous weeks when strong inflows had propelled the cryptocurrency above $80,000.
The outflow wave reflects waning institutional enthusiasm for crypto, with spot Ethereum ETFs also suffering $255 million in withdrawals during the same period. The broader market rout has hit leveraged traders hard, with more than $661 million in crypto positions liquidated in 24 hours, mainly long bets.
Bitcoin touched an intraday low of around $76,500 before stabilizing near $77,000. The decline comes amid rising inflation fears, as the Producer Price Index surged 6% year-over-year and the Consumer Price Index hit 3.8%, exceeding forecasts. Higher oil prices, with WTI crude above $107 per barrel, added to the pressure on risk assets.
Despite the sell-off, Bitcoin’s technical outlook remains somewhat positive. The price still holds above the 50-day simple moving average near $75,500, and a golden cross—where the 50-day SMA crosses above the 200-day SMA—is approaching around $81,400. However, short-term momentum has weakened significantly.
If buyers can push BTC back above $80,000, the token may target the $81,400 to $84,000 resistance zone. Conversely, a breakdown below current support could lead to a deeper correction toward $75,500 or even $73,900, where the 50-day SMA and the Supertrend indicator converge.
The Federal Reserve’s potential to keep interest rates high due to persistent inflation further dampens the appeal of volatile assets like cryptocurrencies. As institutional investors pull back, the crypto market faces a critical test of its resilience.