Weekly Bitcoin Forecast: BTC Drops Below $95,000 as Spot ETFs See Largest Daily Outflow Since Inception

Bitcoin (BTC) has dropped below $95,000 on Friday, heading for its lowest week since August. This latest market decline was driven by the Fed's strong interest rate cut announcement on Wednesday and the largest daily outflow ($671.90 million) from U.S. spot Bitcoin ETFs on Thursday. Technical indicators suggest the decline will continue down to $90,000.

Initial indicators show institutional demand for Bitcoin is weakening

Bitcoin reached an all-time high of $108,353 on Tuesday but has dropped more than 8% by Thursday. The price fell below $95,000 on Friday.

Institutional demand has weakened this week. Coinglass reported three days with $759.4 million in inflows into the spot Bitcoin Exchange Traded Fund (ETF) until Wednesday, followed by an outflow of $671.90 million on Thursday. This outflow ended a streak of inflows since November 27 and is the largest daily outflow since the launch of Bitcoin's spot ETFs in January.

"If I were a trader and I saw inflows into the ETF start to slow down, I would assume we will see some weakness," said Eric Turner, CEO of Messari, in an exclusive interview with FXStreet.

Turner noted that ETF volume would be significant as ETFs are a new source of capital that helps mitigate Bitcoin's volatility.

Pressure from macro factors is causing Bitcoin to decline further.

#BTC