Bitcoin and ether prices maintain decline as stocks hold steady

GBTC’s total outflows on Monday came in at around $640 million, likely contributing to bitcoin’s continued decline

article-image

Artwork by Crystal Le

share

Bitcoin and ether dipped further Tuesday, extending their decline from Monday as traders weighed whether outflows from bitcoin ETFs would continue. 

Ether lost 7% Tuesday over 24-hours, putting it 14% lower over the week. 

Bitcoin was trading around $38,900 Tuesday morning in New York. Bitcoin is now down close to 20% since bitcoin ETFs hit the market in the US earlier this month. 

Analysts say outflows from bitcoin ETFs – driven by investors pulling out of the newly converted Grayscale Bitcoin Trust (GBTC) – are partially to blame for the underlying asset’s decline. 

Read more: GBTC’s asset bleeding to blame for week of flat crypto product flows 

FTX’s bankrupt estate reportedly sold 22 million shares of GBTC on Monday alone, according to a report from CoinDesk. GBTC’s total outflows on Monday came in at around $640 million, according to data from CoinShares. The nine new bitcoin ETF products are still net-positive for inflows, though, posting about $4.13 billion compared to $2.9 in outflows since launch.

“While excluding outflows from GBTC gives a somewhat positive picture, as the impact of those flows fades and the investor base in these funds expands, positive sentiment may gradually return to the market,” said Samer Hasn, market analyst at XS.com. 

Bitcoin (BTC) is still up more than 70% year over year, Hasn said, and the true market impact of bitcoin ETFs will take longer to see. 

Stocks, meanwhile, continued to trade sideways Tuesday after a fairly flat trading day Monday. While the S&P 500 hit a new high Friday, driven by tech stocks, most sectors have not surpassed their January 2022 levels. 

Now, investors wait for the Federal Reserve’s two-day policy meeting to conclude next week, and until then, the US central bank will remain in its typical pre-meeting quiet period. Fed fund futures show markets are all but certain rates will remain unchanged and the first cut will come in March or May. 

Our view remains that the US economy does not need the aggressive rate policy implied by Futures prices,” said Nicolas Colas, co-founder of DataTrek Research. “Equity markets seem to agree, given Friday’s new all-time high for the S&P 500.”


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Flashnote Template (41).png

Research

We believe that few tokens at the application layer are diverging more from fundamentals than ZORA. Its fully-diluted P/S sits at 90x, pricing significant growth despite a consistent decline in weekly revenues since late July. We foresee an 80% decrease in protocol net margins due to a recent update to the fee structure that reduces trading fees from 3% to 1%, while boosting creators’ portion of the fee split. ZORA’s supply overhang also represents a near-term headwind, with 45% of ZORA’s supply (4.5B tokens or $350M at current prices) earmarked for the team & investors beginning to unlock on October 23, 2025 (36-month linear vesting schedule).

article-image

Insiders have the best information — markets should be willing to pay for it

article-image

The CFTC-regulated exchange is opening doors to crypto builders and traders through grants, partnerships, and new deposit options

by Blockworks /
article-image

DFS tells banking organizations to integrate blockchain monitoring tools to curb money laundering and sanctions risks

by Blockworks /
article-image

New short and long-term priorities include L1 gas boosts, ZK-EVMs, privacy reads, and a lean, quantum-resistant Ethereum

by Blockworks /
article-image

The new stBTC token redistributes Bitcoin gas fees to users, creating liquid yield without inflation or lockups

by Blockworks /
article-image

The reserve will collect protocol revenues to back W token, alongside new yield and unlock schedule

by Blockworks /