Crypto flashes red as ETF flows reverse

Crypto markets experienced a significant downturn as risk-off sentiment spread, with Bitcoin dropping 4.5% and traditional assets like the Nasdaq 100 and S&P 500 also facing losses. Bitcoin's rapid fall towards $100,000 from a high of over $126,000 in early October coincided with a reversal in ETF flows, indicating a declining institutional interest after substantial inflows earlier in the month. Notably, outflows exceeded $500 million from major Bitcoin ETFs like IBIT and FBTC, highlighting a shift from accumulation to caution among investors. The market now closely watches macroeconomic indicators such as US payroll reports and Federal Reserve commentary, which may determine the direction of crypto prices. Volatility has increased, particularly among altcoins, as BTC dominance rises amid broader sell-offs. Additionally, concerns about operational practices arose when Morpho faced scrutiny for user losses linked to vault curators, prompting questions about responsibility and oversight in decentralized finance.

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