What happened?
Bitcoin slid about 2% in early Asia, dipping below $107,000 as big holders booked profits and ETF outflows weighed on sentiment. The drop continues pressure from October’s $19 billion washout and looks like a consolidation after a volatile month. On-chain data shows institutional demand has fallen below new coin issuance for the first time in seven months, suggesting fewer large buyers are stepping in.
Who does this affect?
Short-term traders and leveraged players face higher risk as volatility and profit-taking make quick moves more likely. Institutional buyers and crypto ETFs are directly impacted because inflows have slowed and redemptions have been outpacing accumulation. Long-term holders appear to be accumulating, but retail sentiment and macro-driven allocators may stay cautious until flows stabilize.
Why does this matter?
If institutional demand keeps lagging new supply, bitcoin could struggle to break higher and remain prone to sideways or downward moves. Fed signaling and headline-driven macro flows will probably dominate near-term price action, making markets sensitive to policy comments and redemption trends. A reduction in ETF outflows or steadier exchange outflows would be the clearest path to market stabilization and a potential renewed rally.