Bitcoin tested $59,400 on Friday as $691 million exited U.S. spot ETFs in a single session, the largest daily outflow since May, according to Yahoo Finance data. The selloff coincides with a $10.6 billion options expiry on Friday that analysts say could amplify volatility as traders unwind positions. The Crypto Fear & Greed Index plunged to 18, signaling Extreme Fear across markets.
What Happened
U.S. spot Bitcoin ETFs recorded net outflows of $691 million on Thursday, the most since May, according to SoSoValue data cited by Yahoo Finance. BlackRock\u0027s iShares Bitcoin Trust (IBIT) led the exodus with $182 million in withdrawals, the largest single-fund outflow. The selling pressure pushed Bitcoin below the $60,000 psychological level to a session low of $59,400, extending the weekly decline to approximately 10% and the monthly drop to nearly 23%.
Over $1 billion in crypto positions were liquidated in the past 24 hours, with long positions accounting for the majority, according to Crypto Briefing. The liquidation cascade coincided with Grayscale announcing plans to sell $3 billion in Bitcoin to meet cash obligations, adding further supply-side pressure. Meanwhile, the Crypto Fear & Greed Index from Alternative.me dropped to 18, its lowest reading in weeks, reflecting Extreme Fear sentiment.
Why It Matters
The convergence of record ETF outflows, a massive options expiry, and institutional selling creates a perfect storm for Bitcoin price discovery. The $10.6 billion in expiring options represents one of the largest quarterly expiries on record, with the maximum pain point — where option sellers face the greatest loss — pegged at $96,000 by TradingView analysts, far above current levels. This suggests significant gamma exposure that could amplify moves in either direction as dealers hedge positions.
ETF flows have been a dominant driver of Bitcoin\u0027s price trajectory since the U.S. spot funds launched in January 2024. Research from FalconX and 21Shares indicates that positive flow shocks persistently lift prices over 3-4 day horizons, while sustained outflows erode support. The current 13-day outflow streak, totaling over $4.4 billion according to CoinShares, represents the longest redemption run since the funds\u0027 inception.
Grayscale\u0027s planned $3 billion sale adds a known seller to an already fragile market structure. Unlike ETF redemptions which reflect investor sentiment, Grayscale\u0027s sale is a forced liquidation to meet operational obligations, potentially creating a price-insensitive supply overhang.
What\u0027s Next
Markets will watch Friday\u0027s options expiry for clues on near-term direction. If Bitcoin holds above $58,000 — the 200-day moving average support cited by Binance analysts — a relief rally toward $62,000 is possible as gamma hedging unwinds. However, a break below $58,000 could trigger a cascade toward the $55,000-$56,000 zone, where MicroStrategy\u0027s average purchase price of $66,385 provides a longer-term floor.
ETF flow data for Friday will be critical. A reversal to inflows would signal institutional buyers stepping in at discounted levels, while continued outflows would confirm risk-off positioning. The Federal Reserve\u0027s monetary policy trajectory remains a macro wildcard — Reuters reports gold ETFs are also seeing outflows on tightening bets, suggesting the pressure is broader than crypto alone.
MicroStrategy, now rebranded as Strategy, holds 641,692 BTC valued at approximately $38 billion at current prices. The company\u0027s chairman has denied selling and signaled continued accumulation, which could provide a demand anchor if ETF flows stabilize.
For context on the broader market structure, see our coverage of Bitcoin Below $60K: 21-Month Low as ETF Outflows Hit $4.4B, Bitdeer Liquidates Entire Bitcoin Treasury: $205M Sale Funds AI Data Center Pivot, Ford Sues Lemon Law Firm, Ether XRP Dogecoin Lead Crypto Selloff, MicroStrategy Stock Plunges 9%: Bitcoin Strategy Backfires, Bitcoin Hits 21-Month Low: $1.3B ETF Outflows Trigger Risk-Off Selloff, and Bitcoin Below $60K: Extreme Fear Grips Crypto Markets.