Bitcoin News Today: Bitcoin's 30% Plunge Fueled by ETF Exodus and Macro Pressures

Bitcoin's recent selloff has intensified, with the cryptocurrency logging a fourth consecutive week of declines as investors grapple with macroeconomic pressures and shifting sentiment. The price of Bitcoin fell nearly 30% from its October peak to $85,100 as of Nov. 21, driven by massive outflows from U.S. spot Bitcoin ETFs, which have shed $3.79 billion in net outflows this month alone. BlackRock's iShares Bitcoin Trust (IBIT), the largest ETF by assets, accounted for $2.1 billion of those redemptions, marking its worst month since its January 2024 launch.

The decline has been amplified by a broader risk-off environment, with the U.S. dollar strengthening and Federal Reserve policy uncertainty weighing on risk assets. Investors are recalibrating expectations as the central bank's rate-cut trajectory has weakened, with markets now pricing in a 46% chance of a 25-basis-point cut at the December meeting, down from near certainty in October. A stronger dollar typically undermines Bitcoin's appeal as a non-yielding asset, while tighter liquidity conditions have exacerbated selling pressure.

Technical indicators suggest the cryptocurrency is in oversold territory, with the RSI at 25.47 and the MACD trend bearish. However, some analysts remain cautiously optimistic about a potential rebound. ARK Invest, for instance, has continued to buy into the dip, adding $39 million in crypto-linked stocks like BitMine and Bullish in November despite the broader selloff. Cathie Wood's firm has defended its long-term bullish stance, even as it lowered its 2030 Bitcoin price target to $1.2 million from $1.5 million.

Investor sentiment remains fragile, with social media platforms like Reddit reflecting heightened caution. Short-term holders have suffered historic losses, with 65,200 BTC moved to exchanges as traders cut positions. Meanwhile, Bitcoin treasuries and digital asset funds (DATs) are under pressure, with some selling the asset to fund share buybacks amid discounted valuations according to market analysis. The market's volatility has also triggered billions in liquidations, with futures markets showing signs of stress.

Looking ahead, the path for Bitcoin hinges on macroeconomic clarity and ETF flows. Citi Research estimates that every $1 billion in ETF outflows could depress Bitcoin by 3.4%. Conversely, a resumption of inflows or a Fed rate cut could reignite buying momentum.

For now, the market remains in a corrective phase, with many investors adopting a wait-and-see approach. As one trader noted, "The euphoria from earlier this year has been fully exhausted," and the focus has shifted to navigating a prolonged period of uncertainty.