Bitcoin News Today: Structural Reset Looms as Bitcoin's Liquidity Pressures Mount

Bitcoin's recent 30% drawdown from its October peak has sparked comparisons to Google's 2017 market correction, with strategist Raoul Pal suggesting the cryptocurrency is navigating a similar liquidity reset. The asset, trading at $87,080 as of late November, faces mounting pressure from a confluence of factors: record ETF outflows, eroding stablecoin liquidity, and aggressive leverage unwinds. These dynamics have pushed Bitcoin into its steepest two-month decline since mid-2022, outperforming the S&P 500's -2.5% and Nasdaq's -4% losses.

The collapse has been amplified by institutional behavior shifts. November saw $3.5 billion withdrawn from Bitcoin ETFs, the largest monthly outflow since February. Products like iShares Bitcoin Trust (IBET) and Grayscale's GBTC have seen multi-day redemptions, signaling a pause in accumulation by large asset managers. This exodus follows a $19 billion leveraged liquidation event on October 10, which shattered the parabolic rally and created a new resistance cluster between $98,000 and $102,000. Analysts estimate that Bitcoin now requires roughly $1 billion weekly in fresh inflows to regain 4% of its value, a threshold far below current demand.

Liquidity indicators across the crypto ecosystem are deteriorating. Stablecoin market capitalization has shrunk by $4.6 billion since November 1, with net capital outflows of $800 million last week alone. This contraction contrasts with historical patterns, where stablecoin expansions typically precede sustained rallies. The decline in USDT, USDC, and DAI issuance coincides with a 40% drop in average daily spot volume on centralized exchanges to below $25 billion, exacerbating Bitcoin's vulnerability to volatility spikes.

On-chain data reveals divergent behavior among Bitcoin holders. Wallets holding at least 100 BTC-mid-tier "whales"-have seen a 0.47% increase since November 11, equivalent to 91 new entities. This suggests opportunistic accumulation at discounted levels, potentially signaling a bottoming process. However, broader market sentiment remains fragile, as institutional confidence wanes amid macroeconomic uncertainty and the rise of high-yield traditional markets.

While the near-term outlook remains volatile, the correction may force a structural reset. If stablecoin liquidity stabilizes and institutional buyers re-enter the market, Bitcoin could retest its previous resistance levels. For now, the focus remains on whether fresh inflows can counteract the current outflow trend-a test that mirrors Google's 2017 correction as it navigated a shift from speculative frenzy to foundational consolidation.