Bitcoin Rally Faces Pressure as Spot ETFs Record $228.6 Million in Outflows

Bitcoin rebounded on Monday as fears of a major market crash failed to materialize. The recovery followed a sustained sell-off that pushed the cryptocurrency to $80,595 on Sunday afternoon. However, Bitcoin struggled to maintain its gains after crossing the $83,000 resistance level. It initially found support above $82,500 before making another attempt to reach $83,000 around 5:35 a.m. EST. That attempt failed, sending Bitcoin down to $82,069. A brief recovery pushed prices above $82,500 again, but volatility continued throughout the day. By 1:20 p.m. ET, Bitcoin was trading at $81,926, up roughly 1% for the session. Its market capitalization remained above $1.64 trillion as the cryptocurrency struggled to establish a stronger upward trend. Meanwhile, Bitcoin liquidations stayed below $67 million as prices moved within a narrow range. Data from Coinglass showed nearly $34 million in liquidated long positions and just under $33 million in short positions. Ether (ETH) recorded a different pattern, with short liquidations reaching $73 million compared with $42 million in long positions. Across the wider cryptocurrency market, total liquidations reached $334 million, including $173 million in long positions. Bitcoin's recovery also eased concerns about a possible market downturn around the 39th anniversary of Black Monday. The term refers to the major stock market crash of 1987, which had raised fears of renewed market turmoil. Still, Bitcoin's inability to hold above $83,000 suggests that a broader October rally remains uncertain. The cryptocurrency's limited gains have also added to doubts about the widely discussed 'Uptober' trend. ETF Outflows and Glassnode Data Signal Caution Institutional investment flows also point to continued caution in the cryptocurrency market. U.S. spot Bitcoin exchange-traded funds (ETFs) recorded $228.6 million in net outflows last week, following $681 million in outflows during the previous week. According to the source, crypto ETFs lost around $593 million last week. Ether ETFs accounted for the largest share, recording $320 million in outflows. Onchain analytics firm Glassnode said the heavy selling behind Bitcoin's early October decline had eased. However, fresh demand has yet to replace the buying pressure that disappeared during the downturn. Glassnode also noted that spot and ETF buyers remain largely absent. ETF trading volumes have slipped below their lower range, even as net outflows have narrowed. Meanwhile, options traders continue to buy downside protection as implied volatility remains higher than realized volatility. This suggests that market participants are still guarding against further price declines. Onchain data also points to capital shifting toward newer market participants. At the same time, network fees and transfer volumes have fallen by about 10%, while profit-taking has slowed. Together, these signals suggest that Bitcoin's latest rebound has yet to gain strong support from institutional investors. Although selling pressure has eased, weak demand and continued hedging activity remain challenges for a sustained recovery.