Bitcoin News Today: Bitcoin ETF Exodus Driven by Macro Fears and Forced Liquidations

BlackRock's iShares Bitcoin Trust (IBIT) experienced a record $523 million in outflows on November 18, marking the largest single-day redemption since the exchange-traded fund's launch in January 2024, according to Bloomberg data. This follows five consecutive days of net redemptions, reflecting growing investor unease in the crypto market as Bitcoin (BTC) continues to decline. The price of Bitcoin has fallen nearly 30% from its October record high, trading at $91,230 as of November 19, its lowest level in seven months.

The selloff has rippled across the broader crypto ecosystem. So far in November, global investors have withdrawn $2.9 billion from Bitcoin ETFs, with IBIT accounting for $1.2 billion of that total-its largest monthly outflow since inception according to CoinDesk. The fund, which holds $72 billion in assets, now faces pressure from both institutional and retail investors seeking to reduce exposure amid a volatile macroeconomic climate. Analysts attribute the exodus to a combination of forced liquidations, shifting sentiment, and uncertainty over Federal Reserve policy.

Bitcoin's price decline has been exacerbated by a surge in leveraged positions being unwound. Over $19 billion in leveraged bets were liquidated on October 10 alone, triggering a cascade of sell-offs that persist. The market's liquidity has also tightened, with order-book depth at unusually thin levels, amplifying price swings from even modest sell pressure. Meanwhile, the cost of bearish protection has spiked: the 250-day put-call skew for Bitcoin options has reached a seven-month high of 3.1%, signaling heightened demand for downside hedging.

Bitcoin's path forward hinges on its ability to hold key support levels. Traders are closely watching the $85,000–$90,000 range, with a break below $85,000 potentially extending the correction to $75,000–$80,000 according to Interactive Brokers. For now, the market remains in a consolidation phase, with the outcome of the Fed's December meeting and broader liquidity trends likely to dictate the next move.

Despite the selloff, some analysts remain cautiously optimistic. "Selling pressure is fading, with coins rotating into stickier long-term hands," noted a report from 21Shares AG, adding that historically such shifts have preceded market bottoms. Additionally, regulatory clarity via the U.S. Clarity Act and a pipeline of 100+ crypto ETFs awaiting approval could provide long-term catalysts. However, immediate risks remain tied to macroeconomic factors, with December rate cut odds now below 50% and liquidity conditions still fragile.