Bitcoin News Today: Bitcoin's ETF Exodus Feeds Price Spiral, but Inflows Signal Possible Rebound

Bitcoin has entered a state of deep oversold conditions, with market analysts suggesting the asset may be forming an early bottom amid a wave of record outflows from exchange-traded funds. Data from Glassnode indicates that the cryptocurrency's price action and on-chain metrics point to extreme bearish sentiment, raising questions about whether the recent selloff represents a cyclical correction or a more prolonged downturn.

The selloff has been exacerbated by massive redemptions from Bitcoin ETFs, which are on track for their worst month since their inception. Investors pulled $3.5 billion from U.S.-listed Bitcoin ETFs in November 2025, nearly matching the previous record of $3.6 billion set in February. BlackRock's IBIT, the largest Bitcoin ETF by assets, accounted for $2.2 billion of these outflows. The exodus has created a self-reinforcing feedback loop: as capital exits ETFs, downward pressure on Bitcoin's price intensifies, further spooking investors. Citi Research estimates that every $1 billion in outflows correlates with a roughly 3.4% drop in Bitcoin's price.

The broader crypto market has contracted sharply, with Bitcoin's price falling to $80,657—the lowest level since April—despite historically strong performance in November. Ethereum and Solana also faced outflows, though Solana ETFs managed to attract $531 million in their first week by offering competitive staking yields and lower fees according to Yahoo Finance. This divergence highlights shifting investor priorities, as capital flows toward assets perceived to offer better risk-adjusted returns.

Market participants are cautiously optimistic about a potential rebound. According to Nansen, outflows may stabilize once macroeconomic uncertainty eases, particularly regarding Federal Reserve policy and inflation trends. Meanwhile, NYDIG's Greg Cipolaro argued that Bitcoin's long-term fundamentals remain intact, citing institutional adoption and sovereign interest as tailwinds. However, he warned that volatility is likely to persist, with sudden dislocations possible as liquidity tightens.

The selloff has also exposed fragility in the crypto ecosystem. Stablecoin supply declined for the first time in months, with algorithmic stablecoin USDE losing nearly half its outstanding supply after a liquidity crisis in October. Digital asset treasury companies, previously buoyed by premium share prices, now face discounted valuations, forcing some to sell Bitcoin holdings or repurchase shares to manage debt.

Bitcoin's dominance in the crypto market has risen to 58%, as investors retreat to the most liquid and established asset during the downturn. This pattern aligns with historical cycles, where capital consolidates into Bitcoin during periods of stress. However, speculative altcoins have underperformed, with many facing steeper declines than Bitcoin.

While the immediate outlook remains uncertain, some analysts see early signs of stabilization. CoinShares reported $225 million in Bitcoin ETF inflows on November 28, marking a modest reversal after seven consecutive days of outflows. Similarly, Bitcoin's price rebounded to $86,998 in early December, though it remains down 36% from its early-October peak.

The coming months will test the resilience of both the asset and its ecosystem. As one Bitcoin Bancorp executive noted, "The next step for the industry is disciplined execution and strategic deployment, especially as retail adoption and regulatory clarity improve according to the company's report." For now, the market watches closely for signals that the bleeding has slowed—and whether a new floor can hold.

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