Bitcoin Faces Biggest Test as Bull Score Falls to 60 and $520M Leaves ETFs

• Bitcoin price falls below $76K as ETF Outflows reach around $520M, adding pressure to the market
• Bitcoin bull score drops from 80 to 60 as the Clarity Act stalls and the Fed rate hike adds to market uncertainty
• Bitcoin faces a tougher market backdrop as weaker ETF demand and macroeconomic uncertainty weigh on its recent momentum

This week has been particularly brutal for the cryptocurrency market. The Senate’s failure to advance the Clarity Act has added to pressure on the crypto market, with Bitcoin suffering the most out of the lot. Bitcoin’s bull score has fallen from 80 to 60 in a week, with fresh ETF outflows adding another layer of pressure on the asset. The asset has also dropped below the $76K level, while the recent Fed hike has added another source of macroeconomic pressure as Bitcoin trades near recent lows.

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Clarity Act Failure, Fed Hike And ETF Outflows Push Bitcoin Below $76K

The current week was a series of many significant moments. The Clarity Act could not progress in the US Senate. This development coincided with weaker crypto prices and sentiment, with Bitcoin experiencing a volatile stance. At the same time, the Federal Reserve’s decision to raise rates by 25 bps has also made risky assets like Bitcoin appear less lucrative for traders. This led to the overall bitcoin sentiments taking a toll, with exchanges witnessing nearly $520M worth of ETF outflows. Per an update shared by the Wu Blockchain, the US spot Bitcoin ETFs have recorded nearly $296M in outflows on September 16. The US spot ETH ETFs have witnessed outflows worth $224M on the same day.

Per the latest update by the Wu Blockchain, US spot Bitcoin ETFs and Ether ETFs have recorded outflows worth $520M. The failure of the Clarity Act to advance has added to uncertainty around the market, while Bitcoin has faced a volatile price situation. In this process, the asset has traded below the $76K level, flipping its earlier momentum.

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Bitcoin Bull Score Hits 60

In addition to this, Cryptoquant reported another major BTC development. Bitcoin Bull Score has fallen from 80 to 60, signaling how the momentum around the asset is now cooling. The Bitcoin Bull Score is a metric used by Cryptoquant to measure and evaluate the broader market conditions related to the asset.

A higher reading or bull score usually indicates that broader market momentum is supporting the asset. Lower readings, on the other hand, signal the opposite, reflecting fading market momentum.

The latest drop in Bitcoin’s bull score coupled with the major ETF outflows shows the Bitcoin price rally taking a pause in the middle. This weakness was also reflected in the Bitcoin price, which has now traded below the $76K price level.

That being said, the US economic arena remains heated, with the Fed hike adding pressure on risky assets like Bitcoin. The bigger question remains whether Bitcoin can sail past these hurdles and bounce back soon.

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