Bitcoin News Today: Bitcoin ETFs Lose $3B as Macro Fears and Death Cross Drive Sell-Off

Bitcoin ETFs are experiencing one of their worst periods on record, with net outflows surpassing $1.2 billion in a single week as investor sentiment deteriorates amid macroeconomic uncertainty and bearish technical signals. U.S. spot Bitcoin exchange-traded funds (ETFs) have lost nearly $3 billion in November, with BlackRock's iShares Bitcoin Trust (IBIT) leading the exodus. The fund recorded a record $523 million in outflows on a single day-the largest since its January 2024 launch-accounting for over 70% of the month's total redemptions to date. This marks the second-worst month for Bitcoin ETFs, trailing only February's $3.56 billion outflows, and threatens to eclipse that figure if selling persists.

The selloff coincides with Bitcoin's price sliding below $90,000 for the first time since April, erasing nearly 30% of its value from its October peak. The decline has pushed U.S. spot ETF investors into the red, accelerating redemptions as liquidity tightens and confidence wanes. "ETF outflows combined with long-term holder sales have tightened market liquidity," said Dilin Wu, a research strategist at Pepperstone. The average cost basis for spot Bitcoin ETF investors now sits near $90,000, leaving most holdings underwater.

Bearish momentum is amplified by deteriorating macroeconomic conditions. The Federal Reserve's probability of a 25-basis-point rate cut in December has plummeted from over 90% to below 50%, undermining risk-on assets like Bitcoin. Meanwhile, technical indicators, including Bitcoin's fourth "death cross" this cycle-where short-term momentum dips below long-term trends-have deepened investor caution. Smart money traders have also shifted positions, increasing short exposure by $5.7 million in 24 hours, with net short positions reaching $275 million.

Options markets reflect heightened anxiety, with put options dominating open interest. The $80,000 strike price alone holds $2.05 billion in open interest, signaling widespread hedging against further declines. "With ongoing concerns about the U.S. job market," said Sean Dawson, head of research at Derive.xyz.

The outflows have broader implications for the crypto sector. While Bitcoin ETFs bleed, alternative coins like Solana and XRP have attracted inflows, suggesting selective reallocation. However, Bitcoin mining firms face profitability challenges, with American Bitcoin reporting $43 million in Q3 cash outflows and Canaan Inc. recording a $27.7 million net loss despite a 104% revenue surge.

Bitcoin ETFs, once a cornerstone of institutional adoption, now face a critical test of resilience. Analysts remain divided: Standard Chartered's Geoff Kendrick notes that ETF inflows drove Bitcoin's 2025 momentum, but current outflows suggest a reversal. If November's trend continues, it could mark a pivotal moment for crypto investment sentiment, reshaping strategies as investors brace for a turbulent year-end.

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