Bitcoin News Today: "ETF Exodus and Liquidity Woes Split Crypto Market: Majors Anchor, Altcoins Sink"

Bitcoin and Ethereum held steady on Friday, while altcoins like XRP and Dogecoin experienced declines, highlighting a mixed performance across the cryptocurrency market. The benchmark assets faced a broader bearish environment driven by ETF outflows and deteriorating liquidity conditions, according to analysts. Bitcoin (BTC-USD) traded near $87,080, marking a 30% drop from its October peak above $126,000-the steepest two-month drawdown since mid-2022. The asset underperformed major equities, with the S&P 500 and Nasdaq falling 2.5% and 4%, respectively, over the same period according to analysis.

The selloff has been exacerbated by $3.5 billion in redemptions from Bitcoin ETFs this November, the largest monthly outflow since February. Products like iShares Bitcoin Trust (IBIT) and Grayscale's GBTC saw multi-day declines, with analysts estimating that the market now requires roughly $1 billion in weekly inflows to push Bitcoin higher-a threshold far below current demand according to analysis. Institutional activity has also shifted, with large asset managers pausing accumulation after October's peak. This follows a leveraged liquidation event on October 10, when a $19 billion open interest was erased in 24 hours, creating a new resistance cluster between $98,000 and $102,000.

Liquidity indicators across the crypto ecosystem have worsened, with stablecoin market capitalization shrinking by $4.6 billion since November 1. Net outflows of $800 million last week alone moved capital from crypto into fiat, signaling reduced appetite for on-chain risk. Centralized exchange volumes have dropped to below $25 billion daily, a 40% decline from early October, further amplifying Bitcoin's vulnerability to volatility according to analysis.

Amid these challenges, some players are pivoting to new opportunities. Bitfarms, a Bitcoin miner, reported a 122% quarterly rise in adjusted EBITDA to $20 million, but its gross mining margin fell to 35% from 44% a year earlier. The company plans to transition entirely to AI high-performance computing (HPC), a move that could reduce diversification but align with growing demand for compute power. However, the pivot raises execution risks if AI demand wanes or capital expenditures fail to translate into growth according to analysis.

The broader market remains cautious, with Ethereum (ETH-USD) trading near $3,400, its price insulated from Bitcoin's sharp declines. Analysts attribute this to Ethereum's role in decentralized finance (DeFi) and its upcoming upgrades, which could attract renewed institutional interest. Meanwhile, smaller tokens like XRP and Dogecoin fell further, reflecting a flight to perceived safer assets amid macroeconomic uncertainty according to analysis.