Bitcoin News Today: Crypto ETFs Bleed $1.1B as El Salvador Buys $100M Bitcoin Amid Market Panic

The crypto market is gripped by "extreme fear," as the Fear & Greed Index has plummeted to 10-the lowest level since late February 2025-amid a week of sharp losses across major cryptocurrencies. Bitcoin, the largest digital asset, fell over 5% in seven days, trading near $96,000, while the broader market shed 5.8% of its value, according to data from CoinDesk. The selloff reflects a confluence of profit-taking by long-term holders, institutional outflows, macroeconomic uncertainty, and leveraged positions being liquidated, said Jake Kennis, a senior research analyst at Nansen.

The index, which measures sentiment through volatility, trading volume, social media hype, surveys, Bitcoin dominance, and Google Trends, has remained in "extreme fear" territory for over a week. Alternative.me tracking shows the reading dropped to 10 on Nov. 15, marking the lowest point in the current bull market cycle. This level of fear mirrors conditions during the 2022 Terra/Luna collapse, albeit at significantly higher price levels.

Market dynamics are further complicated by heavy outflows from U.S. Bitcoin spot ETFs. Data from Farside Investors reveals $1.112 billion in net outflows from Nov. 10 to Nov. 14, with Ethereum ETFs also recording $728.3 million in withdrawals during the same period. Despite the pessimism, the global crypto market cap held at $3.35 trillion, with Bitcoin dominance steady at 57.2%. Privacy-focused coins like Zcash, Litecoin, and Monero, however, bucked the trend, rising 15.9% to 11.5% in 24 hours.

Bitwise CEO Hunter Horsley offered a cautiously optimistic outlook, arguing that stronger fundamentals-driven by Bitcoin ETFs and pro-crypto U.S. regulations-suggest the bear market may be nearing its end. "The market structure has evolved," Horsley said, noting that institutional adoption and policy shifts are creating a more stable ecosystem. His comments contrast with the current sentiment, where only 44% of traders expect a Federal Reserve rate cut in December, according to Chicago Mercantile Exchange data.

Historical patterns suggest extreme fear often precedes rebounds. During the 2022 downturn, Bitcoin languished near $20,000 before recovering. Analysts like Michael van de Poppe argue that a rebound depends on Bitcoin holding the $94,000 support level and retesting $100,000. He said, "If that happens, there's trillions of short liquidity ready to unwind."

El Salvador's actions underscored the divergence between fear and strategic accumulation. The country spent $100 million to buy 1,090 Bitcoin on Nov. 18, its largest single-day purchase, despite IMF pressures to curb crypto adoption. President Nayib Bukele dismissed concerns, vowing to continue purchases: "Proof of work > proof of whining," he tweeted.

While the immediate outlook remains grim, experts emphasize disciplined risk management. According to Jake Kennis, "Extreme fear readings are a contrarian signal," but caution against over-leveraging amid persistent volatility. The path forward hinges on liquidity improvements, Fed policy, and whether institutional inflows can offset the current outflows.

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