Bitcoin Dips Below $109K, Market Cap Feels the Shock

[Degods]

Bitcoin slipped under $109,000 this week as risk appetite cooled ahead of the U.S. core PCE inflation print. The trigger? ETF outflows flipped negative: $258M drained from U.S. spot BTC ETFs on Sept. 25 (only BlackRock’s iShares saw inflows), while ETH ETFs shed another $251M.

Add in nearly $1B in leveraged long liquidations across crypto, wiping out 225,000 traders and you’ve got a textbook “leveraged washout.” Whales have been net sellers since August, long-term holders are taking profits, and post-Fed uncertainty isn’t helping.

Why the global crypto market cap dropped harder than BTC

Bitcoin sets the tone. Once BTC cracked, ETH and altcoins logged double-digit weekly losses. The market cap shrank faster than Bitcoin’s own dip.

ETF outflows means less institutional demand. ETFs had been structural buyers. Redemptions mean liquidity support is gone.

Liquidations amplify pain. Forced exits turn corrections into broad sell-offs.

The road ahead

History says October often favors bulls, but right now the market is fragile. To regain momentum, BTC needs to reclaim the $113.5K–$116K zone with volume and see ETF flows stabilize. Until then, the global crypto market cap is stuck in a cautious, choppy phase.

My take

This isn’t the time to chase every bounce. Short-term: protect capital, cut leverage, and let the dust settle. Medium-term: upside is still on the table, but the market has to prove it first.