The crypto market grew cautiously as the prices of Bitcoin and Ethereum fell amid growing concerns about institutional flows and network fundamentals. Bitcoin’s recent drop from $70,000 is closely linked to changes in demand for its exchange-traded fund (ETF). Meanwhile, the price of Ethereum has fallen below $2,000 amid intense criticism of its token economy and long-term stability, with top market analysts shorting it as they predict a possible collapse.
When the ETF is flowing, the price of Bitcoin falls
Bitcoin price is currently trading near $67,000 after falling more than 3% in the last 24 hours, according to CoinMarketCap. The latest decline follows a sudden shift in institutional demand for Spot Bitcoin ETFs, which have been the main driver of market acceleration since their launch in 2024.
Data from SoSo Value shows that Spot Bitcoin ETFs recorded a staggering outflow of nearly $228 million on Thursday, March 5, ending a three-day inflow that had brought in nearly $1.1 billion earlier in the week. The pullback comes as sentiment eased despite a brief rally above $73,000, underscoring fears and uncertainty in the broader market.
It is worth noting that the withdrawal of the ETF is carried over to the next day, and on Friday alone saw an amount of more than 348.8 million dollars. While March 2-4 had initially recorded total net assets of more than $94.57 billion, the number has since dropped to $87.07 billion.
Along with the exit from Spot Bitcoin ETFs, the broader market sell-off has emerged as a key factor behind Bitcoin’s recent decline. On Friday, major holders sold BTC ($67,218.00 · Live) in large quantities. In addition, reports indicate that top cryptocurrency exchanges such as Binance and Coinbase are selling bitcoin, which puts pressure on the leading cryptocurrency.
As geopolitical tensions rise and market volatility increases, the next direction of Bitcoin’s price remains uncertain. That is why analysts like Michael van de Poppe maintain a bearish outlook and predict a sharp decline from $60,000 to $48,000 for BTC.
Ethereum price weakens amid token economy
Ethereum price also broke below the key psychological level of $2,000 and is now trading just above $1,900. This decline comes at a time when negative sentiment is growing around cryptocurrency and the economic structure of its network.
A recent report from short-selling firm Culper Research warns that Ethereum could enter a “death spiral” after the December 2025 Fusaka upgrade. According to the report, the update expanded block capacity faster than actual demand, leading to blocks full of low-value transactions and spam. The firm also criticized Ethereum founder Vitalik Buterin for selling ETH ($1,962.60 · Live ) and dismissed Fundstrat co-founder Tom Lee as “clueless” in the face of Ethereum’s new reality.
Culper Research highlighted that Fusaka’s update weakened Ethereum’s tokenonomics by reducing transaction fees and reducing validator revenue and staking yields. The company also noted an increase in address poisoning attacks, where attackers send small transactions to wallets to trick users into sending funds to fraudulent addresses. They estimate that victims have lost at least $87 million in just three months after the Fusaka Ethereum upgrade.
In light of these bearish developments, Culper Research has announced that they are “shorting the air.” The company also called ETH a “broken token” and predicted that holders will have little economic value in the future.
Featured image from Unsplash, chart from TradingView
