Bitcoin News Today: Institutional Exodus via ETFs Drives Bitcoin's $85K Slide

Bitcoin's prolonged slump continued into early December 2025 as the cryptocurrency traded near $85,000, down 26% from its October peak according to market analysis. The selloff, which has erased over $3 billion from U.S. spot Bitcoin ETFs in November according to data, has sparked fresh fears of a bear market reminiscent of the 2018 crash according to financial commentary. Analysts point to a confluence of factors: macroeconomic uncertainty, institutional profit-taking, and a broader risk-off sentiment triggered by the Federal Reserve's shifting rate outlook according to industry analysis.

The decline has mirrored weakness in traditional markets. The S&P 500 fell 4.3% in November through Thursday, with the consumer-discretionary sector-dominated by Amazon and Tesla-slumping 8.9% according to market analysis. The tech-heavy Nasdaq fared worse, with NVIDIA's recent earnings report failing to alleviate concerns over AI-driven valuation bubbles. "Bitcoin's structure now resembles its 2018 breakdown," warned Bloomberg's Mike McGlone, who projected a potential drop to $10,000.

Bitcoin’s performance has created a ripple effect across asset classes. This has raised concerns among both retail and institutional investors about the broader implications for market stability. The interdependence between crypto and traditional assets has become more pronounced in recent months, with crypto volatility now serving as a barometer for macroeconomic stress.

Institutional investors have accelerated their exit through ETFs. BlackRock's iShares Bitcoin Trust (IBIT) led the exodus, bleeding $2.47 billion in November -63% of total ETF outflows according to analysis. Bitfinex analysts attributed the redemptions to tactical rebalancing rather than a structural shift in demand, noting that long-term holders are capitalizing on lower prices. However, the ETF rout has exacerbated market fragility. "The spot ETF channel remains intact, but liquidity is tightening," said Santiment, which recorded $2.8 billion in outflows since November 12.

The Federal Reserve's delayed jobs report and hints of fewer rate cuts in 2026 have deepened the selloff. Vanguard's Sara Devereux downgraded expectations to one or two rate cuts next year, dashing hopes for a risk-on environment. This aligns with Binance CEO Richard Teng's observation that crypto volatility mirrors broader asset classes, driven by deleveraging and risk aversion.

High-profile figures have added to the bearish narrative. Jim Cramer indirectly mocked Cathie Wood's $1 million Bitcoin prediction, criticizing "crypto cheerleaders" amid the 8.2% weekly drop. Wood's Ark Invest, while still bullish, recently trimmed its 2030 price target to $1.2 million. Meanwhile, MicroStrategy's Bitcoin holdings face potential removal from the MSCI USA Index if exposure exceeds 50% of assets according to market analysis.

The market's fragility is further underscored by corporate behavior. Amazon's $15 billion bond issuance and similar moves by AI-focused hyperscalers highlight the sector's debt-driven expansion. Conversely, on-chain data suggests whale accumulation at current levels, hinting at a potential floor. Analysts remain divided: while some anticipate further declines, others see consolidation near $85,000–$90,000 as a precursor to a rebound.

As the year-end approaches, the interplay between institutional caution and long-term adoption will define Bitcoin's trajectory. For now, the cryptocurrency's struggle to stabilize below $90,000 reflects a market grappling with macroeconomic headwinds and shifting investor sentiment.