Bitcoin News Today: Crypto's Crossroads: Whale Buys $2.3B vs. $3.8B ETF Exodus

Bitcoin's weekly Relative Strength Index (RSI) has plummeted to its lowest level since 2022, signaling extreme oversold conditions as major players re-enter the market. The 33 reading on the RSI, a technical indicator measuring price momentum, underscores a sharp selloff that has pushed the cryptocurrency 30% below its October peak. Despite the turmoil, institutional investors and crypto whales are stepping in, with Cathie Wood's Ark Invest leading a surge in buying activity amid the market's downturn.

Ark Invest has aggressively added to its crypto-related holdings over the past two days, purchasing nearly $40 million in equities from firms such as Bullish, Circle Internet Group, and Bitmine Immersion Technologies. On November 20 alone, the firm acquired $39.6 million in crypto stocks, including $16.9 million in Bullish, $15.1 million in Circle, and $7.6 million in Bitmine, according to trade filings. This followed a similar $38.7 million purchase on November 21, with Coinbase and Robinhood also entering the firm's sights according to trade filings and according to reports. Cathie Wood's strategy mirrors her "buy the dip" approach, leveraging depressed share prices to bolster long-term positions in crypto infrastructure companies.

The market's volatility has been stark. The CoinDesk 20 index, a gauge of major crypto firms, fell over 4.7% on November 21, while Bitcoin itself traded near $85,600-down 7.41% in 24 hours. Yet, whale activity suggests optimism. On-chain data reveals that entities holding over 10,000 BTC added 26,300 coins in recent days, valued at $2.3 billion. Meanwhile, the U.K. government's Bitcoin stash, tracked at 61,245 BTC ($5.18 billion), remains a quiet but significant holder according to market data.

However, the narrative isn't entirely bullish. U.S. spot Bitcoin ETFs have seen $3.79 billion in outflows this November, with BlackRock's IBIT alone recording a $523 million single-day redemption. Institutional bearishness is palpable, exemplified by veteran trader Peter Brandt's skepticism about Bitcoin reaching $200,000 by year-end. Complicating the picture further, early Bitcoin adopter Owen Gunden recently liquidated 11,000 BTC ($1.3 billion), sparking debates over whether OG whales are cashing out or merely repositioning assets.

The conflicting signals highlight a market at a crossroads. While Ark Invest and institutional buyers see value, others-like Gunden-are exiting. On-chain expert Willy Woo cautions against interpreting large transfers from dormant addresses as panic selling, noting that moves to Taproot wallets or institutional custody arrangements could reflect strategic planning rather than capitulation.

For now, Bitcoin's RSI remains at a critical juncture. Historically, such extreme levels have preceded multi-year recoveries, as seen in late 2022. Whether this selloff marks the start of a prolonged bear market or a prelude to a rebound will depend on whether institutional demand and whale accumulation can offset the current wave of redemptions and skepticism according to market analysis.