Bitcoin Down 2.8% on Whale Activity and ETF Outflows

Whale Activity Sparks Market Attention

On November 20, 2025, a notable Bitcoin whale, Owen Gunden, deposited 2,499 BTC into Kraken, valued at approximately $228 million. This move followed the disposal of over 11,000 BTC in the prior 30 days, signaling ongoing liquidity adjustments. Market observers interpret the Kraken deposit as a strategic rebalancing rather than an immediate bearish signal. Analysts will continue monitoring such patterns to understand their impact on Bitcoin's broader liquidity.

El Salvador Adds to BTC Reserves Amid Downturn

El Salvador continued its Bitcoin accumulation strategy by purchasing 1,090 BTC during a market dip, increasing its holdings to 7,474 BTC. The purchase, made as the price fell below $90,000, aligns with the nation’s dollar-cost-averaging program initiated in late 2022. Despite concerns from the International Monetary Fund regarding increased public sector exposure to Bitcoin, the administration remains committed to its accumulation policy. The government’s latest buy came amid broader market selling and a tightening of liquidity in the spot Bitcoin market.

ETF Outflows Highlight Investor Caution

BlackRock’s iShares Bitcoin Trust (IBIT) recorded the largest single-day outflow of $523 million, contributing to near $3 billion in net outflows for November. US spot Bitcoin ETFs are on track to experience their worst month yet. The outflows reflect growing caution among investors, even as historical patterns suggest November is typically a strong month for BTC. Despite brief inflows on November 20, the overall trend shows investors withdrawing from the asset class.

Institutional Buying and Treasury Expansions

DDC Enterprise announced an agreement to purchase 300 BTC, marking its largest single acquisition to date. This move is expected to increase its holdings to 1,383 BTC, reinforcing its long-term strategy to build a corporate Bitcoin treasury. Meanwhile, KindlyMD, a NASDAQ-listed firm, holds 5,398 BTC as of November 12, reflecting disciplined portfolio management. ANAP, a Japanese fashion brand, also increased its Bitcoin holdings to 1,047.56 BTC, valued at approximately $96.4 million.

Market Dynamics Shift as Mid-Cycle Holders Exit

Van Eck’s latest ChainCheck report highlighted increased selling pressure from mid-cycle Bitcoin holders, with wallets active over the past five years showing significant outflows. In contrast, long-term whale activity remained steady, with older wallets exhibiting resilience amid the downturn. This divergence suggests a market reallocation, with larger holders shifting supply to smaller investors during periods of volatility.

Futures and Funding Rates Signal Market Exhaustion

Perpetual Bitcoin futures funding rates dropped to levels last seen in late 2023, signaling reduced long-term speculative activity. Open interest in Bitcoin futures has fallen by over 30% since early October, following significant liquidation events. These developments reinforce the narrative of a market in consolidation after a sharp sell-off. Historically, such corrections often precede major bottoming patterns.

Conclusion

Bitcoin continues to face downward pressure amid a combination of whale activity, ETF outflows, and mid-cycle selling. Institutional buyers like El Salvador and DDC Enterprise are offsetting some of the negative momentum, but broader market conditions remain challenging. With prices hovering near key support levels, the next phase of price action will depend on whether larger holders absorb the discounted supply or allow prices to correct further.