Bitcoin News Today: U.S. Bitcoin ETFs Bleed $2.2B as Crypto's Liquidity Crisis Deepens

The crypto market shed over $700 billion in value as Bitcoin (BTC) plunged below key support levels, triggering a wave of redemptions from U.S. spot Bitcoin exchange-traded funds (ETFs) and signaling growing investor caution. The selloff, which accelerated in late November, saw BlackRock's iShares Bitcoin Trust (IBIT) record its largest single-day outflow of $523 million on Nov. 19, according to Farside Investors. This marked a sharp reversal from Wednesday, when the same ETFs briefly ended a five-day outflow streak, pulling in $75.4 million in net inflows as BTC rebounded to $92,000.

Bitcoin's price volatility has left 2025 buyers reeling, with the asset now trading below its 2025 realized price of $103,227-a metric representing the average cost at which coins were acquired-according to Glassnode data. This means the typical investor from this year is sitting on a 13% loss. The current correction mirrors April's 80-day decline, though it has lasted only 43 days so far, with BTC falling from $126,250 in October to $91,439 at press time.

The turmoil has rippled across the crypto ecosystem. U.S. spot Bitcoin ETFs, which had already lost nearly $3 billion in November, saw an additional $2.2 billion in outflows this week-the second-largest weekly outflow on record. Meanwhile, institutional players are recalibrating strategies. Kraken, valued at $20 billion, announced plans for a public listing, while Thai exchange Bitkub is reportedly eyeing a Hong Kong IPO to raise $200 million amid weak domestic markets according to Coindesk reporting.

Market analysts point to broader macroeconomic pressures. Bank of America's Michael Hartnett argued that the crypto slump reflects tightening liquidity and urged the Federal Reserve to cut interest rates to avert further destabilization. "Crypto is the frontier of speculation," he noted, adding that the 35% drop in BTC and 45% decline in Ethereum (ETH) signal a systemic liquidity crunch.

Despite the pessimism, some investors are "buying the dip". ETF trading volume surged to $6.89 billion on Nov. 20, an 18% increase from the prior day, suggesting renewed appetite for risk amid potential year-end catalysts. However, long-term holders and treasury firms are also locking in profits. Siebert Financial's Brian Vieten noted that Bitcoin treasury companies, which purchased nearly $50 billion of BTC over the past year, are now trading at discounts to net asset value, weighing on demand.

The selloff has also redirected capital toward traditional safe havens. Gold attracted $1.9 billion in inflows this week as Bitcoin fell below $90,000-a seven-month low. Kraken's Thomas Perfumo described the market as experiencing a "crypto hangover" driven by leveraged bets and overvaluation, with momentum peaking in August.

As the market grapples with its worst monthly performance since June 2022, the path forward remains uncertain. While some analysts predict stabilization ahead of year-end, others warn that macroeconomic headwinds and regulatory shifts could prolong the downturn.