Bitcoin Updates: Institutions Pull Out and $2 Billion Wiped Out—Is This a Crypto Catastrophe or a Strategic Market Reset?

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Bitget-RWA2025/11/21 19:22

By:Bitget-RWA

- Bitcoin ETFs face $3.79B outflows in November, triggering a $2B liquidation crisis as prices drop 9% below $84K. - Institutional profit-taking, fading Fed rate-cut hopes, and $4.2B options expiry amplify crypto market fragility. - $120B daily market loss highlights sector vulnerability amid regulatory scrutiny and geopolitical risks under Trump. - Analysts warn ETF outflows, stalled listings, and leveraged trading pressures pose ongoing rebound risks.

The cryptocurrency market is experiencing significant instability as

Bitcoin

ETFs see billions withdrawn, sparking a rapid decline that has erased almost $2 billion in leveraged trades and brought the total market value below $3 trillion.

U.S. spot Bitcoin ETFs posted $903 million

in net redemptions on November 20—the second-highest since their debut in January 2024—while

Ethereum

ETFs faced an extra $262 million in outflows, marking eight straight days of withdrawals. BlackRock’s

iShares Bitcoin Trust

(IBIT) led the withdrawals with $355.5 million leaving,

with Grayscale's GBTC

following at $199.35 million. Total November outflows for Bitcoin ETFs have now surpassed $3.79 billion,

setting a new record

Bitcoin’s value plunged more than 9% within a day,

falling to $83,884

as of November 21, while Ethereum dipped below $2,800 and

Solana

tumbled 12% to $126.52.

The downturn led to a wave of forced liquidations

: According to CoinGlass, $1.91 billion in positions were closed, with $1.78 billion from longs and $129.3 million from shorts.

The largest individual liquidation

was a $36.78 million BTCUSD trade on Hyperliquid, highlighting the severity of the selloff. Experts point to a mix of institutional profit-taking, diminished hopes for Federal Reserve rate cuts, and pressure from leveraged trading as causes for the chaos.

Bitcoin Updates: Institutions Pull Out and $2 Billion Wiped Out—Is This a Crypto Catastrophe or a Strategic Market Reset? image 0

Market vulnerability was further exposed by a $4.2 billion crypto options expiration on November 21, with

Bitcoin’s max pain point

at $98,000—well above its current $83,000 price. Ethereum’s open interest also faced downward pressure, with its max pain at $3,200. At the same time,

the wider crypto market shed $120 billion

in value in just one day, marking its worst day since the 2022 crash.

Even amid the steep losses,

some investors see potential

. “For some, this may be an opportunity to buy at lower prices,” Kral commented. Still, analysts warn against hasty purchases during the downturn.

10x Research pointed to continued ETF outflows

, halted new listings, and changing Wall Street dynamics as obstacles to a recovery. This selloff comes after a $19 billion liquidation event in October and

a 23% monthly decline for Bitcoin

, its steepest drop since 2022.

As volatility persists, the U.S. crypto sector remains fraught with uncertainty. While pro-crypto initiatives under President Donald Trump have gained industry backing,

probes into Bitcoin mining equipment maker Bitmain

and unclear regulations highlight ongoing geopolitical risks. For now, traders are preparing for more instability as leveraged bets and macroeconomic challenges continue to test the market’s strength after its recent crash.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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- BlackRock transferred $642M in BTC/ETH to Coinbase Prime, sparking fears of coordinated crypto sell-offs amid prolonged price declines. - Record $523M IBIT outflow and $903M Bitcoin ETF exodus signal institutional profit-taking, with risk-averse positioning accelerating market downturn. - On-chain data reveals BlackRock's Ethereum accumulation halt, contrasting prior aggressive buying, while retail investors offload 0.36% BTC/XRP holdings. - Analysts debate bear market vs. temporary correction, noting Bi

Bitget-RWA•2025/11/21 20:02