Here’s What’s Driving Bitcoin and Ethereum Prices, and Why Investors Should Watch Out
The crypto market grew cautiously as the prices of Bitcoin and Ethereum fell to record lows amid growing concerns about institutional liquidity and network infrastructure. Bitcoin’s recent drop below $70,000 appears to be closely related to shifts in its exchange-trading fund (ETF) demand. Currently, Ethereum’s price dropped below $2,000 amid strong criticism about its token economy and long-term sustainability, with top market researchers missing it as they predict a possible collapse.
Bitcoin Price Crashes As ETF Flows In Reverse
The price of Bitcoin is currently trading near $67,000, after falling more than 3% in the last 24 hours, according to CoinMarketCap data. The latest drop comes after a sudden shift in institutional demand for Spot Bitcoin ETFs, which has been a major driver of market momentum since its launch in 2024.
Data from SoSo Value exhibitions that Spot Bitcoin ETFs recorded a staggering $228 million in outflows on Thursday, March 5, ending a three-day inflow that brought in roughly $1.1 billion earlier in the week. The setback comes as feelings have changed despite a brief bounce above $73,000, underscoring broader market fears and uncertainty.
Notably, ETF derivatives continued until the next day, on Friday alone more than $348.8 million was withdrawn. While March 2 to 4 initially recorded total assets of more than 94.57 billion, this figure dropped to $87.07 billion.
Along with the exit of Spot Bitcoin ETFs, the broader market sell-off has emerged as the main driver behind Bitcoin’s recent decline. Friday, big time owners sell BTC in large volumes. Additionally, reports reveal that top crypto exchanges like Binance and Coinbase have been selling Bitcoin, further suppressing the leading cryptocurrency.
As political tensions are growing and market volatility increases, Bitcoin’s next price direction remains uncertain. As a result, commentators such as Michael van de Poppe maintain a broad view, prediction the biggest drop between $60,000 to $48,000 for BTC.
Ethereum Price Drops Amid Token Economics Backlash
The price of Ethereum also dropped below the key psychological level of $2,000 and is now trading above $1,900. This decline comes as negative sentiment surrounding the cryptocurrency and its network economy structure grows.
The latest report from the retail firm Culper Research he warns that Ethereum may enter a “death cycle” following that December 2025 development of Fusaka. According to the report, block capacity development has expanded faster than actual demand, leading to blocks filled with low transaction and spam rates. The company also criticized the founder of Ethereum, Vitalik Buterin, for selling ETH and dismissed Fundstrat founder Tom Lee as “ignorant” in the face of Ethereum’s new reality.
Culper Research emphasized that Fusaka’s development has weakened Ethereum’s tokenomics by reducing transaction costs and lowering verification income and stake yields. The company also highlighted the increase in penetration address-poison attackswhere attackers send micro-transactions to wallets to trick users into sending money to fake addresses. They estimate that victims lost at least $87 million in just three months following the development of Ethereum Fusaka.
Because of this bearish development, Culper researchers announced that they are “short Ether.” The company also labeled ETH a “broken token,” predicting that holders will be left with little economic value in the future.
Featured image from Unsplash, chart from TradingView
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