Cryptocurrency Market Sees Downturn as Weekly ETF Outflows Reach $600M Amid Economic Uncertainty

The cryptocurrency market experienced a decline over the past 24 hours, influenced by a sell-off in equities following major US tech firms Meta and Microsoft increasing their AI investment projections, sparking concerns about overspending. Bitcoin remained relatively stable, dropping 0.3% to around $110,000 on the 17th anniversary of its white paper publication, while ether decreased 1.3% to approximately $3,840. This subtle move comes as traders assess the evolving outlook for interest rates and inflation on both sides of the Atlantic. The European Central Bank appears to be halting its rate-cutting cycle, whereas the Federal Reserve indicated that an interest-rate cut in December is not guaranteed. On Polymarket, the perceived odds of three US rate cuts this year decreased from 86% to 64%. Crypto exchange-traded fund flows turned negative, with spot bitcoin ETFs seeing $600 million in outflows and ETH ETFs registering $184.3 million outflows, according to SoSoValue data. The ETFs are showing signs of investor caution, while the Fear & Greed Index slides deeper into fear territory, Bitget COO Vugar Usi Zade stated. This transition reflects growing macro anxiety, fueled by persistent inflation, elevated interest rates, and uncertainty around the Fed's policy path. However, despite the pullback, on-chain activity remains resilient, and the structural case for crypto exposure is still intact. Zade pointed to long-term factors like the bitcoin halving due in 2028 and evolving global regulation as potential catalysts for long-term rallies. At Coinbase, third-quarter earnings exceeded expectations, with $1.9 billion in revenue and a profitable layer-2 network, Base, thanks to higher ETH prices and rising transaction volume. Meanwhile, derivatives positioning shows bitcoin traders leaning on income strategies in the $105K–$115K range. Over the next few weeks, markets will likely remain sensitive to macro data releases and any resolution to the ongoing government shutdown. These factors may drive sentiment swings but do not alter the longer-term trajectory.