Bitcoin is on track for its worst month since the 2022 crypto crash, as large ETF outflows and sharp liquidations hit the market. Data shows investors are turning risk-averse, leading to strong selling pressure across major digital assets.
Bitcoin ETFs Record $3.5 Billion in Outflows
Bitcoin exchange-traded funds (ETFs) are set for their worst month since launch. Investors pulled out about $3.5 billion in November, nearly matching the $3.6 billion record seen in February.
BlackRock’s flagship ETF, IBIT, saw $2.2 billion in redemptions this month. Analysts say this wave of selling is weighing heavily on Bitcoin’s price performance. According to Citi, every $1 billion in ETF outflows can drive Bitcoin 3.4% lower, supporting the bank’s $82,000 bear-case target.
Bitcoin Drops 23% in November
The pressure from ETF redemptions and broader market weakness pushed Bitcoin down as much as 6.4% to $81,629 on Friday before it recovered slightly to $84,166. For the month, Bitcoin is down about 23%, its steepest decline since June 2022 during the TerraUSD collapse.
Despite a supportive environment with rising institutional interest and a pro-crypto White House, Bitcoin remains 30% below its early-October all-time high. The decline follows the massive October 10 wipeout, when the liquidation of leveraged positions erased nearly $1.5 trillion from the total crypto market.
Crypto Market Liquidations Cross $1.9 Billion
Coinglass data shows more than $1.9 billion in crypto liquidations over the past 24 hours, affecting more than 403,000 traders. Analysts say a new wave of “risk-off” sentiment, triggered partly by heavy selling in global tech stocks, accelerated the drop.
The market has now moved into an “extreme fear” zone, signaling a rapid decline in investor confidence.
BlackRock Records Its Largest Ever Bitcoin Sale
Last week, BlackRock executed its biggest single-day Bitcoin sale, offloading $523 million worth of BTC, the largest outflow in IBIT’s history.
The process is straightforward: when investors buy IBIT shares, BlackRock buys Bitcoin. When they redeem shares, BlackRock must sell Bitcoin to meet those redemptions. With withdrawals accelerating, more selling pressure is being added directly onto the market.
Outlook: Market Faces More Volatility Ahead
With ETF outflows rising, liquidations increasing, and sentiment turning negative, analysts warn that volatility may continue in the short term. Recovery will depend on whether institutional flows stabilize and whether risk appetite improves across global markets.
