Crypto Market Suffers Sharp Decline Amid ETF Outflows and Liquidations

The cryptocurrency market has been experiencing a downturn, with fresh outflows from spot exchange-traded funds (ETFs) adding pressure to already weakening price action. According to data from Farside Investors, Bitcoin ETF flows turned negative on March 18, with total net outflows of approximately $129.6 million.

The largest redemptions came from BlackRock's IBIT, which saw more than $100 million in outflows, alongside smaller withdrawals across other issuers including Fidelity and Bitwise products. This reversal is notable after several sessions of steady inflows earlier in the week, suggesting that institutional demand has become more sensitive to short-term price action.

Ethereum ETFs followed a similar pattern, posting roughly $55.5 million in net outflows. Losses were concentrated across multiple funds, with no meaningful offsetting inflows, reinforcing the idea that institutional capital is pulling back broadly rather than rotating within the asset class.