Bitcoin News Today: Bitcoin's Plunge: ETF Exodus and Macro Uncertainty Test Market Resilience

Bitcoin's selloff deepened in late November, with the cryptocurrency falling to a seven-month low below $90,000 as market sentiment deteriorated to "extreme fear." The CoinDesk Fear & Greed Index plummeted to 10, its lowest level since February 2025, reflecting widespread panic across the crypto market. Bitcoin, which had surged to a record $126,000 in October, has since erased all gains for the year, trading at levels last seen in early March. The broader crypto market, as measured by the CoinDesk 20 index, lost 5.8% of its value in a week, with Ethereum, XRP, and Solana all posting double-digit declines.

Analysts attributed the collapse to a confluence of factors. On-chain data from Nansen highlighted that large holders reduced their Bitcoin positions, while derivatives markets saw over $240 million in liquidations in a single week. Meanwhile, macroeconomic uncertainty loomed large, with the Federal Reserve's dimming prospects for rate cuts spooking risk assets. The CME FedWatch tool showed a 43.9% chance of a December rate cut, down sharply from 80% in early November.

The selloff has also been amplified by waning demand for Bitcoin spot ETFs. Over $2.8 billion has flowed out of these funds in the past month, removing a key source of steady demand. "The ETF-driven outflows have created a vacuum, leaving the market vulnerable to short-term volatility," said Edul Patel, CEO of Mudrex according to recent analysis. Institutional investors, however, have maintained a bullish stance. Strategy's recent purchase of 8,178 Bitcoin-worth $835 million-has partially offset selling pressure, according to Patel.

Technical indicators suggest the pain may not be over. Bitcoin's price confirmed a "death cross" on the daily chart, a bearish signal that historically precedes prolonged declines. The asset also appears to be forming a falling wedge pattern, with a breakout above $107,000 potentially targeting its previous all-time high of $124,000. CryptoQuant analysts noted that Bitcoin's stablecoin supply ratio has reached levels seen before major recoveries, hinting at a possible turning point.

Despite the gloom, some experts see early signs of capitulation. The short-term holder seller exhaustion metric, a gauge of weak hands exiting the market, hit a 15-month low in November. On-chain data also shows rising activity from short-term holders, a pattern often observed near market bottoms. Swissblock, a private wealth manager, noted that Bitcoin's "risk-off signal" has shifted to a low-risk regime, suggesting selling pressure is easing.

The geopolitical landscape added further complexity. China's accusation that the U.S. stole 127,000 Bitcoin-worth $13 billion-sparked concerns about supply dynamics. While the dispute could trigger short-term volatility, some analysts argue it may reinforce Bitcoin's "digital gold" narrative, treating it as a strategic asset.

Bitcoin's path forward remains uncertain. Retail investors are waiting for a catalyst, while institutional conviction and on-chain liquidity patterns hint at potential stabilization. For now, the market grapples with a fragile balance between macroeconomic headwinds and structural selling, with key levels like $93,000 and $85,000 under close scrutiny.