Bitcoin News Today: "Whales Hoard Crypto Amid Outflows: Market Debates Bottoming Signal or Deeper Downturn?"

The U.S. Bitcoin and Ethereum spot ETFs experienced significant outflows of $1.865 billion and $1.357 billion, respectively, last week, signaling a shift in investor behavior amid a broader market slump. On-chain analytics from Sentora, formerly IntoTheBlock, revealed that exchange balances for both cryptocurrencies have dropped sharply, with Bitcoin's outflows marking one of the largest weekly movements this quarter, according to a TradingView article. The data suggests a potential shift in sentiment as investors move large amounts of crypto into long-term storage rather than trading on exchanges.

The outflows come after a turbulent October for the crypto market, which ended with both Bitcoin and Ethereum posting negative monthly returns. Bitcoin closed October 2025 at 4% below its monthly open, breaking a six-year streak of bullish October performance known as the "Uptober" trend. Ethereum fared worse, closing 7.15% below its opening price, according to the same TradingView article. These declines followed a mid-month crash that rattled investor confidence, raising questions about whether the market's traditional seasonal strength has faded.

Sentora's data highlights reduced activity on the Bitcoin and Ethereum blockchains, with no clear signs of the bullish momentum that typically precedes year-end rallies. However, some analysts argue the outflows could reflect growing confidence among large holders, or "whales," who are prioritizing security over liquidity. Whale transaction tracker Lookonchain reported that two newly created wallets withdrew 2,000 BTC ($260 million) from Binance last week, a move interpreted as a strategic shift to cold storage, the TradingView article noted. This behavior aligns with broader patterns of institutional investors and high-net-worth individuals hedging against market volatility.

The Ethereum outflows mirrored Bitcoin's trend, with $600 million leaving centralized exchanges. While Ethereum's decline is less dramatic than Bitcoin's, the altcoin's performance has lagged in recent months, partly due to regulatory uncertainties and competition from rival blockchains. The combined outflows for both assets suggest a broader reevaluation of risk in the crypto space, with investors favoring a wait-and-see approach ahead of potential macroeconomic catalysts, such as the Federal Reserve's interest rate decisions, the article observed.

Market observers remain divided on the implications. Some view the outflows as a sign of "accumulation" by long-term holders, while others warn that reduced exchange activity could exacerbate liquidity challenges. "The data points to a lack of near-term bullish catalysts," said one analyst, noting that the market is still digesting October's losses. For now, the focus will be on whether these outflows signal a bottoming process or a deeper correction in crypto markets.