BTC, ETH Selloffs Lock Global Crypto Market at $2.3trn

The global crypto market capitalisation inched lower to $2.32 trillion on Wednesday, primarily driven by Bitcoin (BTC) and Ethereum (ETH) selling pressure from institutional outflows.

Transactions across top digital currencies have been bearish, reflecting sustained negative sentiment in the crypto market. Bitcoin has been marked for its worst Q1 performance that mirrored 2028 event.

The market has seen persistent outflows from US spot Bitcoin ETFs, signaling reduced institutional demand and creating direct sell pressure on BTC, which dragged the broader market lower.

Crypto analysts said market-wide risk aversion, reflected in an “Extreme Fear” sentiment index of 12, combined with elevated leverage in derivatives markets, amplifies the downward move. Based on trading data from a crypto exchange, Bitcoin fell 0.95%, contributing over 85% of the total market’s decline.

The move was fueled by continued capital flight from US spot ETFs, with net outflows hitting $360 million last week and BlackRock transferring 1,701 BTC worth $115 million to Coinbase, signaling potential sell-side pressure.

This suggests that institutional appetite is waning amid macroeconomic uncertainty, turning a key source of demand into a source of supply. BTC trading volume has increased by 9% to $33 billion, and Ethereum volume surged by more than 18% to $20 billion.

Traders said the immediate path hinges on upcoming U.S Federal Open Market Committee minutes scheduled to be released later in the week and Bitcoin’s ability to hold $65,000.

Analysts said If macro cues remain hawkish or BTC breaks support, a test of $63,000 is likely. A recovery requires either a halt in ETF outflows or a positive surprise from the Fed.

The market is in a fragile equilibrium, awaiting a fundamental catalyst to determine its next directional move. The combination of institutional ETF outflows and pervasive fear has created a negative feedback loop, with Bitcoin’s weakness dictating the broader market’s direction.