Bitcoin Weekly Forecast: BTC drops below $95,000 as spot ETFs see largest daily outflow since inception

Bitcoin (BTC) fell below $95,000 on Friday, heading for its lowest week since August. This latest market fall was spurred by the Fed's aggressive rate-cut announcement on Wednesday and the greatest single-day outflow ($671.90) from Bitcoin US spot ETFs on Thursday. Technical indicators show the pullback will continue to $90,000.

Early indicators of Bitcoin institutional demand weakening
Bitcoin hit a record high of $108,353 on Tuesday but fell more than 8% till Thursday. It dropped below $95,000 on Friday.

Institutional demand weakened this week. Coinglass reported three days of $759.4 in Bitcoin Spot Exchange Traded Funds (ETF) inflows till Wednesday, then a $671.90 million outflow on Thursday. This outflow ended a string of inflows since November 27 and was the greatest single-day outflow since Bitcoin's spot ETFs launched in January.

“If I'm a trader and I see those ETF inflows start to slow down, I'd say we'll have some weakness,” Messari CEO Eric Turner told FXStreet in an exclusive interview.

Turner said ETF volumes would be noteworthy since ETFs are a fresh source of money that smooths Bitcoin's volatility.

Pressure from macro factors deepens Bitcoin downturn.
After Wednesday's FOMC meeting, the US Federal Reserve (Fed) slashed rates hawkishly, causing bitcoin prices to fall this week. The Fed decreased the federal funds rate to 4.25% to 4.50% as predicted but projected a slowing in rate decreases in 2025, lowering riskier assets like Bitcoin.

According to CoinGlass, nearly $1.68 billion in total liquidations and $371.51 million in BTC occurred after Bitcoin's price fall on Wednesday and Thursday.

Apart from this hawkish prediction, Fed Chair Jerome Powell declared the Fed “is not allowed to own Bitcoin.” Powell said that the Fed cannot acquire Bitcoin and has no plans to change this stance, which hurt the cryptocurrency.

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