Crypto Markets: Bitcoin and Ethereum ETFs Bleed – Here Are 3 Altcoins You Should Watch Instead
The crypto market saw another wave of outflows this week as both Bitcoin and Ethereum spot exchange-traded funds (ETFs) recorded substantial redemptions.
The retreat signals a cooling appetite among institutional investors, even as traditional finance heavyweights like BlackRock continue to dominate inflows. With volatility rising and sentiment wavering, traders are increasingly turning to altcoins that show early signs of technical strength and renewed accumulation.
ETF Outflows Deepen Despite BlackRock Strength
According to data from Farside Investors, Bitcoin spot ETFs registered total net outflows of $101 million on October 22. However, BlackRock’s IBIT fund once again stood out, attracting a net inflow of $73.6 million and bringing its historical total to $65.17 billion. Valkyrie’s BRRR ETF also managed modest inflows of $2.14 million, raising its cumulative figure to $323 million.
Still, the day was overshadowed by continued withdrawals from Grayscale’s GBTC, which saw a single-day outflow of $56.6 million. This brought GBTC’s total historical outflows to $24.55 billion – a reminder that many investors continue to rotate away from legacy products toward newer, lower-fee alternatives.
The total net asset value (NAV) of all Bitcoin spot ETFs now stands at roughly $146.27 billion, representing about 6.8% of Bitcoin’s total market capitalization.
A similar pattern emerged across Ethereum ETFs, which collectively lost $18.77 million on the same day. BlackRock’s ETHA fund was a rare bright spot, recording $111 million in inflows and offsetting much of the $49.46 million outflow from Fidelity’s FETH fund. Ethereum ETF NAVs now sit at $25.82 billion, with cumulative inflows of $14.57 billion since launch.
Broader Market Faces Renewed Volatility
The latest ETF outflows coincide with a rise in global market uncertainty. Investors are bracing for fresh U.S. inflation data and the Federal Reserve’s rate decision next week, both of which could set the tone for risk assets through year-end.
Bitcoin has remained range-bound near $106,000, while Ethereum lingers just above $2,450, showing hesitancy despite a recent rebound in gold and equities. Analysts note that derivatives data reveal subdued open interest and muted funding rates, indicating a lack of speculative momentum across major exchanges.
Still, not all corners of the crypto market are showing weakness. Several altcoins are displaying encouraging technical patterns and sentiment recovery. Among them, Chainlink (LINK), Aave (AAVE), and Sei (SEI) have emerged as top candidates for a potential rebound, supported by fresh buy signals on key indicators.
Chainlink (LINK): The Leading Blockchain Oracle Eyes Breakout
Chainlink, the decentralized oracle provider that bridges smart contracts with real-world data, appears to be forming a symmetrical triangle pattern on the charts. According to market analyst Ali Martinez, a decisive breakout above $25 could trigger a powerful bullish move, potentially targeting $53 or even $100 in the months ahead.
From a technical perspective, Chainlink $LINK appears to be forming a symmetrical triangle.
A break and close above $25 could trigger a bullish breakout, opening the path to $53 or even $100.https://t.co/ZB78FY3W4l
— Ali (@ali_charts) October 23, 2025
At present, LINK trades near $17.37, having declined from its yearly high above $26. However, the token’s RSI remains below 40, hinting that the asset could be oversold. On the daily chart, MACD lines are narrowing, suggesting that bearish momentum may soon fade.
Chainlink has remained a cornerstone of blockchain infrastructure, powering price feeds for decentralized finance (DeFi), derivatives, and gaming ecosystems. Its continued integration into cross-chain protocols, such as CCIP (Cross-Chain Interoperability Protocol), adds long-term value to its ecosystem. If momentum returns, LINK could once again play a leadership role in the altcoin market.
Aave (AAVE): DeFi Giant Receives a Technical Buy Signal
Aave, one of the oldest and most established DeFi lending protocols, has also caught traders’ attention. Martinez pointed out that the TD Sequential indicator on AAVE’s chart recently flashed a buy signal, often considered an early sign of trend reversal after extended declines.
TD Sequential flashes a buy signal for $AAVE! pic.twitter.com/fSgCe9JLo2
— Ali (@ali_charts) October 23, 2025
Trading near $221, AAVE appears to be stabilizing above a key psychological level at $210. The RSI is hovering around 38, while MACD momentum is flattening after months of downward movement – a technical setup that often precedes relief rallies.
Beyond the charts, Aave continues to expand its footprint in decentralized finance. Its liquidity markets on Ethereum and layer-2 solutions like Arbitrum and Base are showing renewed activity, driven by yield opportunities and growing institutional interest in on-chain lending.
If bullish momentum strengthens, analysts expect AAVE could retest resistance at $250 and possibly $270, marking a short-term recovery phase for the DeFi sector.
Sei (SEI): Oversold Layer-1 Network Poised for Recovery
Sei, a layer-1 blockchain optimized for high-speed trading and decentralized exchanges (DEXs), has faced heavy selling pressure in recent weeks. Its token dropped to around $0.18, but technical indicators now suggest that the decline may be nearing exhaustion.
The RSI has plunged below 32, indicating deeply oversold conditions, while the TD Sequential indicator has issued a buy signal. Historically, such signals have preceded notable short-term reversals. Sei’s MACD histogram also shows signs of converging toward the signal line, hinting at fading bearish momentum.
$SEI looks ready to bounce as the TD Sequential flashes a buy signal! pic.twitter.com/EIpX73j5c8
— Ali (@ali_charts) October 23, 2025
Despite its young age, Sei’s ecosystem has rapidly expanded, attracting developers from both the Cosmos and Solana communities. Its architecture allows for sub-second finality and parallel transaction execution – features that appeal to traders seeking low latency in DeFi and GameFi environments. Should market sentiment improve, Sei could see an accelerated recovery compared to its peers.
Altcoins Regain Focus Amid ETF Turbulence
While institutional capital continues to ebb and flow through Bitcoin and Ethereum ETFs, retail traders and crypto-native investors are redirecting their attention toward undervalued altcoins. Technical setups across LINK, AAVE, and SEI suggest that these assets could see renewed inflows as traders seek opportunities outside the heavily regulated ETF market.
Moreover, historical trends show that when ETF volumes stagnate, liquidity often migrates back into higher-volatility segments of the market. This rotation could set the stage for short-term rallies in fundamentally strong projects – particularly those tied to infrastructure, DeFi, and layer-1 scalability.
For now, broader volatility remains elevated as global markets digest inflation data and central bank guidance. But amid uncertainty, opportunities are beginning to re-emerge for those willing to look beyond the ETF headlines.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
