Bitcoin Price News: Investors Withdraw $500M from BTC ETFs – Is BTC Heading to $100K?

Bitcoin (BTC) has retreated by nearly 3% in the past 7 days after the Federal Reserve announced that it will cut interest rates for the first time this year.

The top crypto currently trades at $113,000 but dropped to $111K at some point today as negative momentum briefly accelerated.

On Sunday, nearly $300 million worth of BTC long positions were flushed out of the market as the price broke through the $115K barrier.

Bitcoin Open Interest (in BTC) – Source: CoinGlass

However, open interest (OI) has stood at high levels from a historical standpoint. Since this metric adds up both long and short positions to measure traders’ overall interest in an asset, it is hard to determine at the time if this high OI could support either a bullish or bearish outlook for the token.

That said, market conditions remain quite favorable for crypto assets, although they do not necessarily favor Bitcoin.

Investors Are Pouring More Money Into ETH ETFs

Altcoin season has begun. Top tokens in this category like Ethereum (ETH) and BNB Coin (BNB) have made new all-time highs during the cycle already. Meanwhile, BNB has surpassed the $1,000 mark and is now the best-performing crypto in the top 5 with year-to-date gains of 45%.

When altcoins start to outperform BTC, capital will progressively rotate out of the top crypto and into these tokens. This is easier than it was a few years ago now that we have exchange-traded funds (ETFs) that offer exposure to ETH, Solana (SOL), and XRP (XRP).

Data from Farside Investors shows that nearly $500 million flowed out of Bitcoin (BTC) ETFs in the past 2 days. Hence, investors are either positioning for an upcoming drop or they are already starting to pour capital into other assets.

The rate at which assets under management (AUM) on Bitcoin and Ethereum ETFs have been growing is evidence of that ongoing rotation.

Daily AUM for Ethereum ETFs – Source: The Block

According to data from The Block, BTC ETFs have seen the value of their holdings increase by 2% since the beginning of August. Comparatively, assets on ETH’s ETFs have grown by 33% during that same period.

Although it could be argued that this is the result of a 13% increase in the price of ETH compared to zero gains for BTC, AUM growth outpaces the altcoin’s gains. Hence, ETFs linked to BTC have seen nearly no inflows during this 50-day period while ETH-linked products have expanded at a much faster rate.

BTC Could Hit $125K If It Bounces Strongly Off This Level

Looking at BTC’s daily chart, the price has bounced off the $112,000 support area as we expected. In a previous Bitcoin price prediction, we highlighted that this was a key level to watch for bulls.

BTC/USD Daily Chart (Coinbase) – Source: TradingView

That said, trading volumes are still relatively low to confirm that this demand zone is strong enough to support a trend reversal. If we get a move above $118,000, that would set BTC on track to hit $125,000 in a relatively short period.

We still hold a bullish outlook with a target of $140,000 for BTC before the year ends. Even though we could get a deeper pullback to $108,000, it seems highly unlikely that the top crypto will hit $100K again in the next few weeks as market conditions remain quite favorable.