Bitcoin News Today: ETF Outflows and Regulatory Scrutiny Drive Bitcoin's Sharp Decline

Bitcoin's Price Pressures Intensify Amid ETF Outflows and Regulatory Scrutiny

Bitcoin (BTC) fell below $84,000 in late November, extending a sell-off driven by macroeconomic uncertainty and risk-averse sentiment according to recent reports. The cryptocurrency's decline coincided with record outflows from Bitcoin spot ETFs, which lost $903 million on November 14 - the largest since November 13. Ethereum (ETH) and XRP ETFs also faced outflows of $262 million and $3.57 billion in open interest, respectively, highlighting a broader retreat from risk assets. Analysts attribute the trend to institutional investors recalibrating portfolios ahead of the Federal Reserve's December policy meeting, with SoSoValue data showing U.S.-listed Bitcoin ETFs holding $113 billion in net assets despite the selloff.

Regulatory pressures added to the market's unease. Bitmain faces a U.S. investigation over national security risks, with American Bitcoin's use of 31,145 Antminers S21+ machines drawing scrutiny. The probe underscores vulnerabilities in the U.S. crypto mining sector, which has already grappled with trade tensions and supply chain delays from China. Meanwhile, Japan's $135-billion stimulus package sparked fears of yen weakness and potential rate hikes, further dampening Bitcoin's appeal as a hedge. The yen's 10-month low against the dollar has historically benefited crypto traders, but Japan's record debt levels and policy uncertainty have shifted sentiment.

Amid the volatility, new legislative developments emerged. Rep. Warren Davidson's Bitcoin for America Act, introduced on November 20, proposes allowing taxpayers to pay federal liabilities in Bitcoin and channeling proceeds into a Strategic Bitcoin Reserve. The bill, backed by the Bitcoin Policy Institute, estimates a 1% adoption rate could generate $14 trillion in cumulative value over two decades, positioning the U.S. to lead in digital innovation. Market participants are adapting to the shifting landscape. Bitcoin Depot reported $72.9 million in liquidity for Q3 2025 but warned of softer revenue in Q4 due to regulatory headwinds and seasonal trends. Conversely, OPESS AI launched an AI-driven investment platform to navigate volatile markets, offering tailored strategies for retail and institutional investors. PubKey, the Bitcoin-themed bar in Washington, D.C., also gained traction as a cultural touchpoint, with Treasury Secretary Scott Bessent's appearance signaling growing mainstream acceptance.

The interplay of macroeconomic factors, regulatory scrutiny, and innovative financial tools underscores Bitcoin's complex trajectory. While short-term pressures persist, long-term institutional and legislative developments could reshape the market's dynamics in 2026.