Bitcoin News Today: Bitcoin Tumbles 34% as 21-Day U.S. Selling Pressure Flags in Coinbase Index

Bitcoin Prices Shaken as Coinbase Premium Index Plummets

Bitcoin's price tumbled to $88,000 on Nov. 20, erasing earlier gains fueled by Nvidia's earnings, as the Coinbase Bitcoin Premium Index hit -0.0989%, signaling persistent U.S. selling pressure. The index, which measures the price gap between Coinbase and the global average, has remained negative for 21 consecutive days, reflecting a shift in market dynamics amid broader macroeconomic uncertainty.

The decline followed a brief rebound above $93,000 after Nvidia's (NVDA) strong earnings report on Nov. 19, which initially buoyed risk assets. However, optimism faded as Federal Reserve officials hinted at maintaining higher-for-longer interest rates. Cleveland Fed President Beth Hammach emphasized concerns over inflation and elevated stock prices, echoing Alan Greenspan's 1996 "irrational exuberance" warning. The September employment report—showing 119,000 jobs added—further reinforced expectations of delayed rate cuts.

Meanwhile, Bitcoin spot ETFs recorded $3 billion in net outflows during the week ending Nov. 21, with BlackRock's iShares Bitcoin Trust (IBIT) alone losing $523 million in a single day. Cumulative trading returns during U.S. hours have remained negative for the entire month, contrasting with flat or slightly positive performance in Europe and Asia. This trend has been exacerbated by a surge in forced liquidations, totaling $1.82 billion in long positions as of Nov. 20.

The Coinbase Premium Index's sustained negative territory underscores structural weaknesses in U.S. demand. A drop to -$90 in the premium gap, as reported by CryptoQuant, highlights intense hedging activity and capital outflows. "A negative premium typically reflects diminished risk appetite and increased hedging behavior," noted analysts at BlockBeats. The metric has also coincided with a 34% correction from Bitcoin's October peak, with institutional investors pulling back amid deteriorating on-chain metrics.

Despite the selloff, recent data shows a tentative reversal. U.S. Bitcoin ETFs ended a five-day outflow streak on Nov. 21, recording $238.4 million in net inflows, led by IBIT's $60.6 million gain. Abu Dhabi's sovereign wealth funds, which tripled their IBIT holdings in Q3 2025, have emerged as a stabilizing force. However, the broader market remains fragile, with the CoinDesk Bitcoin Price Index trading 31.63% below its all-time high.

Market participants are now watching for a potential December Fed rate cut, which could reignite institutional demand. If easing materializes, ETF inflows could return to $400 million weekly averages seen during dovish cycles. For now, Bitcoin faces critical support at $84,000, with a break below that level likely to trigger further panic selling.