Bitcoin News Today: Institutional Exodus and $2B Liquidations: Crypto's Crisis or Calculated Correction?

The crypto market is in turmoil as Bitcoin ETFs hemorrhage billions in outflows, triggering a sharp selloff that has wiped out nearly $2 billion in leveraged positions and pushed the total market capitalization below $3 trillion. U.S. spot Bitcoin ETFs recorded $903 million in net outflows on November 20-the second-largest since their January 2024 launch-while Ethereum ETFs saw an additional $262 million in redemptions, marking eight consecutive days of withdrawals. BlackRock's iShares Bitcoin Trust (IBIT) led the exodus with $355.5 million in outflows, followed by Grayscale's GBTC at $199.35 million. Cumulative November outflows for Bitcoin ETFs now exceed $3.79 billion, the highest on record.

Bitcoin's price plummeted over 9% in 24 hours, trading at $83,884 as of November 21, with Ethereum sliding below $2,800 and Solana dropping 12% to $126.52. The selloff triggered a cascade of liquidations: CoinGlass data shows $1.91 billion in forced exits, with $1.78 billion from long positions and $129.3 million from shorts. The largest single liquidation - a $36.78 million BTCUSD position on Hyperliquid - highlighted the intensity of the downturn. Analysts attribute the turmoil to a confluence of factors, including institutional profit-taking, fading Federal Reserve rate-cut hopes, and leveraged trading pressures.

The market's fragility was compounded by a $4.2 billion crypto options expiry on November 21, with Bitcoin's max pain level at $98,000 - far above its current price of $83,000. Ethereum's open interest also faced bearish pressure, with max pain at $3,200. Meanwhile, the broader crypto market lost $120 billion in value in a single day, its worst performance since the 2022 collapse.

Despite the carnage, some see opportunity. "For some, this could be a chance to enter the market at a lower price," Kral said. However, analysts caution against rushing to buy the dip. 10x Research highlighted ongoing ETF outflows, stalled listings, and shifting Wall Street incentives as risks to a rebound. The selloff follows a $19 billion liquidation event in October and a 23% monthly drop for Bitcoin, its worst since 2022.

As the market grapples with volatility, the U.S. crypto landscape remains contentious. While pro-crypto policies under President Donald Trump have drawn industry support, investigations into Bitcoin mining hardware producer Bitmain and regulatory uncertainty underscore the sector's geopolitical risks. For now, traders brace for further turbulence as leveraged positions and macroeconomic headwinds test the resilience of a market still reeling from its latest crash.