Bitcoin and Ether deepened their weekly losses on Friday as a surge in Treasury yields and oil prices collided with an already fading September rally. The move triggered the largest single-day Bitcoin ETF outflow since June and close to $974 million in leveraged liquidations, pushing both tokens toward key technical support.
Bitcoin fell 0.6% to $82,428.7 by 02:08 ET on Friday. It was on track to lose about 2.8% this week, which would snap a three-week gaining streak. Ether moved the same way, falling 2.7% to $2,498.21 and trading down more than 7% on the week. The decline builds on a correction that was already forming: bearish MACD divergence and fading ETF inflows had appeared weeks before Thursday's selloff, according to ActionForex.
Yields and oil squeeze an already tired rally
The US 10-year Treasury yield reached around 5.35% this week, its highest level since 2002, before easing toward 5.23% after a reasonably well-received $22 billion 30-year auction. Higher risk-free yields raise the opportunity cost of holding Bitcoin and Ether while tightening financial conditions more broadly. At the same time, Brent settled at $104.28, up around 4%, as supply concerns tied to Gulf shipping attacks and hurricane disruption pushed crude higher, though oil pared some gains after Trump said the US would not attack Iran before the November midterms.
According to ActionForex, Governor Christopher Waller said further rate hikes are likely if the economy evolves as anticipated, adding the moves "do not need to come at consecutive meetings." September's FOMC minutes similarly showed most policymakers expected another hike by year-end, while investing.com separately noted markets grew more confident the Federal Reserve will raise rates at least once more as it grapples with sticky inflation.
ETF outflows and liquidations pile on
Spot Bitcoin ETFs recorded $484.9 million of net redemptions on October 7, the largest single-day outflow since June, led by IBIT at $207.7 million. Separately, data from SoSoValue showed spot Bitcoin ETFs headed for their first weekly outflow in four, at over $700 million, per investing.com. Leveraged positioning then turned the weakness into a faster slide: around $974 million of crypto positions were liquidated over 24 hours on Thursday, with Ether accounting for roughly $311 million and Bitcoin around $238 million.
Other tokens lagged Bitcoin for the week too, as XRP lost near 6% and BNB fell 5.6%. Separately, Solana fell 5.4% and Cardano fell 3.4% on Friday alone.
Technical levels now in focus
Bitcoin remains above its 55-day EMA near 79,196, the first test on the way down, with the 38.2% retracement at 76,040.50 sitting close to the 75,026.09 September low. A sustained break below that zone would open the door toward 72,545.65 and 69,050.80. Ether sits closer to its own test, trading just above its 55-day EMA near 2,479.85, with the September low at 2,358.79 the next level to watch.
Sources: ActionForex, investing.com
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