Bitcoin’s $80,000 Support Threatened by Weak US Stocks as Spot ETF Inflows Hit One-Month High

Bitcoin may test support at $80,000 as weak US equities and rising oil prices weigh on risk assets. Still, US spot Bitcoin exchange-traded funds are helping support the market after posting their biggest daily net inflow in about a month.

CoinDesk reported on Oct. 20 that Bitcoin traded around $81,390, down about 1.1% over the past 24 hours. Ether fell 1.7%, while the CoinDesk 20 Index slipped about 1.6%.

Weakness in Asian equities and higher global crude prices added pressure to the crypto market. Nasdaq 100 and S&P 500 futures also fell, while crypto-linked stocks including Coinbase and Galaxy Digital declined in premarket trading.

QCP Capital said continued deleveraging across the broader stock market could spill over into digital assets and threaten Bitcoin’s $80,000 support level.

Demand for Bitcoin through spot ETFs, however, strengthened. US spot Bitcoin ETFs recorded about $527 million in net inflows the previous day, the largest daily intake in the past month.

Most of that money went into BlackRock’s IBIT. The fund drew about $665 million in net inflows, while products from Fidelity and Grayscale posted outflows.

Spot Ether ETFs, by contrast, saw net outflows of $103.3 million, extending a run of withdrawals to four straight trading sessions. CoinDesk said that suggests recent buying has been concentrated in Bitcoin rather than the broader digital-asset market.

The macro backdrop also remains a headwind. The yield on the US 10-year Treasury was around 5.13%, while Brent crude traded near $110 a barrel. Higher energy prices could further weaken appetite for risk assets if they add to inflation pressures.

Still, continued strength in US Treasuries, falling real yields or a weaker dollar could create a more supportive backdrop for risk assets including Bitcoin.