Bitcoin News Today: Macroeconomic Jitters and Fed Hesitation Spark Bitcoin ETF Exodus

Bitcoin's price slid below $100,000 in early November, triggering a wave of redemptions from U.S. spot Bitcoin exchange-traded funds (ETFs) as institutional and retail investors sought to offload their holdings. According to data, BlackRock's IBIT, the largest Bitcoin ETF, saw $257 million in outflows on November 13 alone, contributing to a total of $870 million in net outflows from Bitcoin ETFs-the second-largest single-day withdrawal since their launch. This marked the third consecutive week of redemptions, with total outflows for the week reaching $622 million according to analysis.

The sell-off has intensified as macroeconomic uncertainties and shifting risk appetite weigh on the market. The Federal Reserve's reluctance to cut interest rates, coupled with a government shutdown risk and a drop in the Secured Overnight Financing Rate (SOFR) to 3.92%, the lowest in two years, have heightened investor caution. On-chain data shows Bitcoin's price correction has led to $920 million in liquidations, with $749.75 million from long positions, according to Coinglass.

BlackRock's ETF outflows are part of a broader market selloff. Ethereum (ETH) and XRP also declined, with Ethereum ETFs recording $259.7 million in redemptions on November 13-the largest since October. The total cryptocurrency market capitalization dropped to $3.36 trillion, reflecting a 5.4% decline over 24 hours.

Analysts attribute the exodus to fading institutional demand and a lack of retail participation. While hedge funds have increased their crypto exposure to 55%, up from 47% in 2024, the recent outflows signal waning confidence in Bitcoin's short-term trajectory. BlackRock's IBIT, along with Grayscale's GBTC and Fidelity's FBTC, have seen significant redemptions, with GBTC leading the charge at $318 million in outflows on the same day.

The technical outlook for Bitcoin remains bearish, with prices testing support levels near $92,000 to close a CME futures gap. Historically, Bitcoin has shown resilience near this level, having initiated a major bull run in April 2025 from $95,000. However, continued selling by long-term holders-offloading 104,000 BTC monthly-threatens to deepen the correction.

Regulatory and policy developments could play a pivotal role in the market's next move. The White House's ongoing discussions to curb the influence of proxy advisers and index-fund managers, including BlackRock, may further impact institutional voting power and investment strategies. Meanwhile, the Biden administration's push for capital markets reforms, including a planned dinner with Wall Street CEOs, underscores the political dimension of the current market dynamics.

For now, Bitcoin faces a critical juncture. A rebound may hinge on the Federal Reserve's policy shifts, resolution of the government shutdown, or renewed institutional demand. However, with ETFs continuing to hemorrhage assets and macroeconomic headwinds persisting, the path to recovery remains uncertain.

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