Bitcoin News Today: Bitcoin ETF Outflows Clash with Institutional Resilience as $90K Pivotal Test Looms

Bitcoin (BTC) price recently traded above $90,500 as on-chain activity suggests large holders are depositing coins to exchanges, signaling potential market stabilization amid ongoing volatility. This development follows a broader trend of record outflows from Bitcoin exchange-traded funds (ETFs) in November, which analysts attribute to short-term tactical rebalancing rather than a structural shift in institutional demand. Bitfinex analysts noted that profit-taking by long-term holders and leveraged positions unwinding are primary drivers of the $3.7 billion in ETF outflows, with BlackRock's iShares Bitcoin Trust (IBIT) leading the exodus with over $2.47 billion in redemptions. Despite these outflows, the firm emphasized that Bitcoin's structural fundamentals remain intact, with institutional adoption as a store-of-value asset continuing to gain traction.

Price dynamics, however, remain a focal point for investors. Projections for 2025 suggest Bitcoin could test a high of $168,000, contingent on breaking free from a bearish trend that has seen the asset dip below $90,000. Analysts highlight that while a 20% rally in late November has brought BTC closer to the $90,000 threshold, sustained movement above $96,000 is critical to validate a reversal from the downward trajectory observed since October. On-chain data further complicates the outlook, with aggressive selling by long-term holders (LTHs) reducing the circulating supply to 13.6 million BTC. This sell-off, coupled with a decline from the October peak, indicates cyclical exhaustion, according to market analysts. The current price action below key moving averages and the dominance of short-term realized losses-reminiscent of the FTX collapse in 2022-underscore the fragility of buyer sentiment.

Amid the turmoil, institutional confidence in Bitcoin persists. Texas's recent allocation of $5 million into BlackRock's BTC ETF underscores a growing appetite for the asset, even as prices remain below all-time highs. This move is seen as a bullish signal, reinforcing Bitcoin's role as macro collateral. Simultaneously, projects like Bitcoin Hyper are attempting to address scalability bottlenecks by introducing a Solana Virtual Machine (SVM)-powered Layer 2 solution, aiming to enable sub-second transactions and low fees. The project's presale has already raised over $28.5 million, with whale participation suggesting optimism about Bitcoin's infrastructure layer.

The interplay between short-term volatility and long-term fundamentals defines the current landscape. While ETF outflows and on-chain sell-offs indicate near-term pressure, institutional allocations and technological innovations hint at resilience. For Bitcoin to regain momentum, analysts stress the need for a sustained rally above $90,000 to rebuild conviction among investors. The coming months will likely test whether the market can absorb the ongoing supply pressure from LTHs or if further capitulation will push prices toward critical support levels near $72,000.