- Bitcoin dropped below $110K as $162B was wiped from the crypto market.
- Economic data and ETF outflows fueled investor caution.
The crypto market faced steep losses on September 26 as fresh U.S. economic data, ETF outflows, and looming geopolitical risks weighed heavily on sentiment. Bitcoin slipped under $110,000, dragging the entire market down with it, while investors brace for more volatility ahead.
U.S. Data Triggers Bitcoin Risk-Off Reaction
Markets reacted swiftly to stronger-than-expected U.S. economic reports. Revised Q2 GDP growth came in at 3.8%, alongside solid manufacturing numbers and lower jobless claims. These results signaled a resilient economy, shifting expectations around Federal Reserve policy.
U.S. initial jobless claims for the week ending September 20 were 218,000, below the expected 235,000, with the prior week's figure revised from 231,000 to 232,000. U.S. Q2 real GDP annualized growth rate (final) was 3.8%, above the expected and previous 3.3%. U.S. Q2 core PCE…
— Wu Blockchain (@WuBlockchain) September 25, 2025
Traders who had been pricing in deeper rate cuts were forced to adjust, with risk assets selling off quickly. Crypto, which often mirrors equities in risk-off periods, was hit hard. Bitcoin dropped below $110,000, Ethereum fell under $4,000, and altcoins like XRP, solana, and cardano also tumbled.
According to market data, more than $162 billion in value was wiped out in just one day, with leveraged traders facing liquidations across major exchanges.
ETF Outflows Deepen the Sell-Off
Adding to the bearish environment, spot Bitcoin ETFs recorded $258 million in outflows on September 25. BlackRock’s IBIT was the only product to attract inflows, while other funds saw capital exit. Ethereum ETFs faced similar pressure, logging their fourth consecutive day of withdrawals totaling $251 million.
𝗪𝗛𝗜𝗟𝗘 𝗬𝗢𝗨 𝗪𝗘𝗥𝗘 𝗦𝗟𝗘𝗘𝗣𝗜𝗡𝗚, 𝗧𝗥𝗨𝗠𝗣 𝗦𝗛𝗢𝗢𝗞 𝗧𝗛𝗘 𝗠𝗔𝗥𝗞𝗘𝗧𝗦 𝗔𝗚𝗔𝗜𝗡 🚨
New tariff wave announced, all going live on October 1st 😱
• 100% tariff on branded/pharma products unless made in the U.S.
• 30% tariff on upholstered furniture.
• 25%… pic.twitter.com/uHReeC1QHS— Wise Advice (@wiseadvicesumit) September 26, 2025
Analysts note that the persistence of ETF outflows signals declining investor appetite, reinforcing market weakness.
Tariffs and Government Shutdown Fears Pressure Sentiment
Beyond economic data and ETFs, geopolitical headlines are weighing on markets. New U.S. tariffs on pharmaceuticals, trucks, and furniture are set to take effect on October 1. Traders fear these measures could slow economic activity, reducing liquidity and investment appetite.
At the same time, ongoing budget disputes in Washington raise the probability of a government shutdown, adding another layer of uncertainty.
What Comes Next for Bitcoin and Crypto?
Market watchers warn that volatility could continue in the coming week, especially as new inflation data approaches. Traders are now closely watching whether Bitcoin can hold above the crucial $100,000 level or if deeper declines are on the horizon.
For now, the crypto market remains under pressure, with investors adopting a cautious stance amid mounting economic and geopolitical headwinds.
ALSO READ:IOTA Introduces Native Bitcoin Bridge to Expand DeFi Opportunities
DISCLAIMER:
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of the publisher. The publisher does not endorse or guarantee the accuracy of any information presented in this article. Readers should conduct further research and consult additional sources before making any decisions based on this content.