Bitcoin (BTCUSD), Ethereum (ETHUSD), and other top cryptocurrencies continue to struggle on Friday amidst intensified geopolitical and geoeconomic uncertainties. Based on data obtained, the world’s largest digital asset has lost about 1% over the last 24 hours, trading below $89k on Friday, with $36 billion in trading volume at the press time. ETHUSD has also lost some weight, down by about 2% on the day, with $21.688 billion in trading volume at the press time.
According to data from CoinMarketCap.com, the crypto market fell 1.39% over the last 24 hours, extending a 7-day decline of 7.06%. The drop reflects a risk-off shift amid regulatory uncertainty and ETF outflows. The market reacts to the CLARITY Act—a pivotal crypto regulatory bill—facing potential delays as the U.S. government shutdown deadline looms in seven days.
According to crypto analysts, the delay enhanced uncertainty in the market, as a shutdown would halt legislative progress and could delay other crypto-related proceedings, such as SEC ETF reviews. Also, traders react to the prospect of prolonged regulatory ambiguity, which typically dampens institutional and retail confidence, leading to defensive positioning and capital outflows. The Senate vote on the federal funding bill next week; a shutdown would likely extend the market’s cautious tone.
Spot Bitcoin ETF flows were negative $32 million, and Ethereum ETF flows were negative $42 million, marking the largest withdrawals in two months per a Binance market update. This aligns with a broader sentiment shift: the Fear & Greed Index sits at 34, which correlates with continued selling as retail traders follow suit, down from neutral last week. Sustained ETF outflows indicate institutional profit-taking or risk reduction, removing a key source of buy-side support.
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