The cryptocurrency market continued its downward spiral on Friday, with Bitcoin, Ethereum, and Solana all experiencing significant losses. The sell-off was triggered by a massive outflow of over $226 million from spot Bitcoin Exchange Traded Funds (ETFs) on Thursday, according to data from Farside. This sudden exodus of funds came just two days after Bitcoin ETFs had recorded inflows worth $100 million.

The hardest hit was Fidelity's FBTC, which saw outflows of $106 million, followed by Grayscale's GBTC with $61 million, Ark Invest's ARKB with $52.7 million, and VanEck's ETF with $11 million. This rapid withdrawal of funds has left many wondering if the crypto market is headed for another prolonged downturn.

However, not all news is bleak. Ethereum ETFs are expected to receive approval from the Securities and Exchange Commission (SEC) by the end of the summer, according to SEC Chair Gary Gensler. Michaël van de Poppe, founder and CEO of MN Trading, remains optimistic about Ethereum's prospects, predicting that the momentum toward listing the Ethereum ETF will begin to emerge soon.

In fact, Ethereum experienced one of its most significant days in terms of accumulation by long-term holders on Friday, according to CryptoQuant data. Accumulation addresses acquired 298,000 Ether tokens, worth $1.03 billion, the second-highest daily buying on record. Julio Moreno, head of research at CryptoQuant, noted that the demand for Ethereum has surged, with buying by permanent holders reaching unprecedented levels.

However, the crypto market's woes continued, with 52,082 traders liquidated in the past 24 hours, amounting to total liquidations of $112.76 million. ETH and BTC longs faced the highest liquidation, totaling $18 million. The broader financial markets also traded lower on Friday, with the Dow Jones Industrial Average falling 0.5%, the S&P 500 shedding 0.4%, and the Nasdaq Composite dropping 0.3%.

As the crypto market continues to bleed, investors are left wondering if this is a temporary correction or a sign of deeper troubles ahead. One thing is certain - the coming weeks will be crucial in determining the direction of the crypto market.