Bitcoin News Today: Fading Rate Cut Hopes and Bitcoin ETF Exodus Send Stocks Plummet

U.S. stocks closed lower on Thursday as the Nasdaq Composite fell over 2%, extending a week of volatility driven by fading expectations for Federal Reserve rate cuts and mounting redemptions from Bitcoin exchange-traded funds (ETFs). According to market data, the S&P 500 dropped 0.92% to 6,672.41, while the Dow Jones Industrial Average slid 1.18% to 46,590.24. The Nasdaq's decline mirrored broader market fragility, with tech-focused benchmarks under pressure as investors reassessed risk amid macroeconomic uncertaintyhttps://www.marketwatch.com/data-news/cme-group-inc-cl-a-stock-underperforms-monday-when-compared-to-competitors-b6ef1014-5eddf77379e3.

Bitcoin prices dipped to $86,100 at one point on Thursday, a stark reversal from its $92,000 level earlier in the week. The cryptocurrency's slide coincided with a record $523 million outflow from BlackRock's iShares Bitcoin Trust (IBIT) ETF on Tuesday, the largest single-day redemption since the fund's January 2024 launch. U.S. spot Bitcoin ETFs are now on track for their worst month yet, with nearly $3 billion in net outflows recorded in November. BlackRock alone accounted for 71% of these redemptions, underscoring the fund's outsized influence on the sector.

The selloff intensified as institutional investors adopted a defensive stance. Smart money traders added $5.7 million in cumulative short positions in Bitcoin over 24 hours, signaling bearish expectations. Meanwhile, the probability of a 25-basis-point rate cut at the Fed's December meeting fell to 46%, down from 93.7% a month ago, according to CME Group's FedWatch tool. This shift has eroded appetite for risk assets, with Bitcoin ETFs shedding $2.96 billion in November to date.

Despite a brief rebound on Wednesday—when U.S. Bitcoin ETFs recorded $75.4 million in net inflows for the first time in five days—the trend remains bearishhttps://cointelegraph.com/news/us-bitcoin-etfs-break-outflow-streak-as-btc-reclaims-92k. BlackRock's IBIT led the reversal with $60.6 million in inflows, though this paled against its previous outflow record. Analysts caution that the outflows reflect a broader reallocation rather than mere profit-taking. "The market is shifting from momentum to caution," said Wali Makokha, chief product officer at Mansa, noting that Bitcoin's 30% pullback from its October highs has tested the resolve of newer ETF investors.

Bitcoin's technical outlook worsened last week when the asset printed its fourth "death cross", a bearish signal formed when short-term momentum falls below long-term trends. While this pattern historically precedes market bottoms, liquidity stabilization and reduced rate-cut hopes have kept downward pressure intact. Stablecoin reserves, which hit a record $72.2 billion, may yet provide a lifeline for Bitcoin, though analysts project a narrow trading range of $60,000–$80,000 through December if the Fed maintains its current stance.