Bitcoin News Today: Bitcoin's 23% Plunge: ETF Exodus or Institutional Resilience?

Bitcoin's price plunged to $82,605 on November 21, marking a 4.53% drop for the day and extending its monthly loss to 23%-its worst performance since June 2022 according to reports. The crypto market cap fell below $2.8 trillion as $1.9 billion in long positions were liquidated within four hours, with Ethereum, Solana, and BNB all posting double-digit declines as data shows. Weak U.S. unemployment data and fading hopes for Federal Reserve rate cuts exacerbated investor anxiety, while DeFi exploits added to the downward spiral. Open interest in Bitcoin futures has fallen 35% from October's peak, signaling waning speculative activity.

The outflows from Bitcoin ETFs, which hit $903 million on November 20, have sparked debates about institutional confidence. BlackRock's iShares Bitcoin Trust (IBIT) alone recorded a $355.5 million net outflow, the largest single-day withdrawal since its 2024 launch. Analysts at Bitfinex argue that these outflows reflect short-term tactical rebalancing rather than a broader loss of institutional interest. They attribute the selloff to profit-taking by long-term holders and leveraged positions unwinding amid uncertainty over a potential December Fed rate cut. Meanwhile, Grayscale's Bitcoin Mini Trust and Fidelity's FBTC also saw significant redemptions, though some smaller ETFs like ARKB and BITB posted modest inflows according to reports.

Despite the turmoil, institutional demand for Bitcoin remains structurally intact. Abu Dhabi's sovereign wealth funds, for instance, tripled their IBIT holdings in Q3 2025, while Asian institutional buyers have consistently added to their BTC positions according to data. Vincent Liu of Kronos Research noted that ETF investors are typically long-term holders who remain "underwater" but unlikely to panic sell as research shows. The average ETF investor's cost basis remains above $90,000, suggesting that further price declines could trigger renewed accumulation.

In a separate development, India announced plans to launch a rupee-pegged stablecoin called Arc in early 2026, developed by Polygon and Anq. The Asset Reserve Certificate (ARC) will operate alongside the Reserve Bank of India's CBDC, creating a dual-layer digital payments system. Backed by government securities and Treasury Bills, Arc aims to counter the dominance of U.S. dollar stablecoins like USDT and USDC while keeping liquidity within India's financial system. Corporate accounts will be permitted to generate new ARC tokens, aligning with capital-control regulations.

Other market updates include BitMine Immersion's Ethereum treasury reaching 3.63 million tokens, with total crypto and cash holdings valued at $11.2 billion. The company's CEO highlighted the asymmetric risk/reward potential of Ethereum amid regulatory shifts like the GENIUS Act as analysts point out. Meanwhile, Trust Stamp unveiled a patent-protected framework for embedding biometric identity verification into stablecoins, addressing concerns over money laundering and compliance.

As Bitcoin tests support levels near $84,000, analysts remain divided on its near-term trajectory. While some caution further declines, others point to institutional buying and macroeconomic catalysts-such as a potential Fed rate cut-as potential drivers for a rebound.