Key facts
- Bitcoin fell below $63,000, its lowest point since August 3.
- Spot Bitcoin ETFs saw $192 million in outflows over two consecutive days.
- U.S. equities rallied on Thursday after producer price inflation data cooled.
- Ether also declined, while some altcoins outperformed major cryptocurrencies.
- Derivatives data suggests increasing bearish sentiment for Bitcoin Cash and Hedera.
Bitcoin experienced a notable decline, trading below $63,000 for the first time since August 3, as spot exchange-traded funds (ETFs) saw outflows for a second consecutive day. A total of $192 million exited these products, marking the first back-to-back outflow days since late July. This price drop erased the previous week's gains.
Despite the downturn in the crypto market, U.S. equities showed strength following the release of producer price inflation data, which cooled to 4.7%, falling below forecasts. The S&P 500 and Nasdaq 100 both saw gains after the report.
While bitcoin and ether prices slipped, some altcoins demonstrated resilience and outperformed the major cryptocurrencies. Derivatives data indicated a growing bearish sentiment, particularly for tokens like Bitcoin Cash and Hedera, with significant increases in open interest and negative funding rates suggesting the building of short positions.
Bitcoin's 30-day implied volatility, a measure of expected price swings, eased back below 36%, indicating a potential reduction in short-term price uncertainty. Options market activity remained mixed, with notable trades in both call and put options for bitcoin and ether.