Crypto market slides as BTC, ETH, and major altcoins drop amid ETF outflows and weakening sentiment

The Crypto Fear and Greed Index tumbled to 27 (Fear) from 36 a day earlier, reflecting mounting caution after a volatile week. Analysts say traders are reducing exposure as risk appetite fades amid ETF withdrawals and stronger U.S. dollar trends.

Major movers: BTC and ETH lead market pullback

Bitcoin (BTC) slid 2.8% to $104,577, maintaining a market cap of $2.08 trillion, while Ethereum (ETH) dropped 6.4% to $3,493. BNB fell 8.3% to $946, and Solana (SOL) declined 11% to $157, marking one of the sharpest corrections among major assets. XRP and Dogecoin (DOGE) both lost more than 6%, while Cardano (ADA) fell 7.4%.

Despite the downturn, select altcoins defied the trend — Jelly-My-Jelly (JMJ) surged 183%, Decred (DCR) rose 150%, and Zcash (ZEC) gained 19%, with renewed interest in privacy and masternode-based cryptocurrencies.

ETF flows highlight institutional caution

Bitcoin spot ETFs recorded $186.5 million in outflows on November 3, led by BlackRock’s IBIT, while Ethereum ETFs saw $135.7 million in redemptions. The pullback underscores fading institutional demand following weeks of market volatility.

Despite the decline, BlackRock remains dominant in BTC ETF holdings with $85.3 billion in assets, followed by Fidelity ($21.8B) and Grayscale ($18.2B). For Ethereum, BlackRock’s ETHA led with $81.7 million in outflows, while Fidelity’s FETH and Grayscale’s ETHE followed suit.

By contrast, Solana ETFs bucked the trend, registering $70 million in net inflows — their fourth consecutive day of gains — led by Bitwise’s BSOL, which drew $65 million.

Market outlook: consolidation phase amid weak sentiment

Bitcoin continued trading below $107,000, slipping to $104,370 during early Tuesday sessions. Analysts expect a sideways trading range between $104,000 and $106,000 as investors await fresh signals from ETF flows and Federal Reserve policy updates.

A break above $106,500 could trigger a rebound toward $109,000–$112,000, while a dip below $103,500 may expose the market to further losses near $100,000, a key psychological support level.

Meanwhile, Ethereum’s repeated failure to hold above $3,700 suggests continued seller dominance. A recovery above $3,550 could pave the way toward $3,750–$3,900, but a slide below $3,450 risks extending the decline toward $3,250.

Corporate updates and regulatory shifts

Strategy, Michael Saylor’s Bitcoin-focused firm, announced a Euro-denominated preferred stock offering to raise funds for additional Bitcoin purchases. The firm recently added 397 BTC worth $45.6 million between October 27 and November 2.

Separately, FTX scrapped its plan to restrict creditor repayments in 49 jurisdictions following intense backlash, signaling a partial win for affected investors.

Despite the ongoing correction, analysts maintain that long-term holders remain resilient, with steady exchange outflows suggesting underlying strength. However, with fear returning to the market and institutional flows weakening, crypto assets are likely to remain volatile in the short term.