Bitcoin Today's News: Fall below 90,000 extreme panic, ETF outflow of 3 billion dollars

Bitcoin news today has shocked the market, with the price of Bitcoin falling below the $90,000 mark for the first time in seven months this week, touching a low of $86,681, facing a rapid liquidation of $250 million amid a weak stock market. The Fear and Greed Index is currently in a state of “extreme fear,” and the market capitalization of the U.S. Spot Bitcoin ETF has evaporated by nearly $3 billion since November.

Bitcoin falls to a new seven-month low of 86,681 dollars

(Source: Swissblock)

This week, the price of Bitcoin has fallen below the $90,000 mark for the first time in seven months, intensifying the sell-off in the cryptocurrency market and raising concerns about whether digital assets are once again early warning signals for a broader risk asset. Amidst a weak stock market, Bitcoin faced a rapid liquidation of $250 million, dropping to a seven-month low of $86,681, indicating that the cryptocurrency market is more susceptible to traditional financial sentiment.

According to CoinGecko data, the global cryptocurrency market capitalization has fallen by 2% in the last 24 hours to $3.08 trillion, with trading activity being active but gradually weakening, totaling $202 billion. The fall of Bitcoin has continued across various timeframes: a daily drop of 2.5%, a weekly drop of 12.7%, and it has broken below the key support level that traders have been monitoring for several months.

Ethereum has also shown a similar trend, falling by 14% within a week. The decline of Ripple is even greater, with a drop of over 17% in seven days. Furthermore, the Bitcoin Fear and Greed Index is currently in a state of “Extreme Fear.” The Fear and Greed Index is a composite indicator that measures market sentiment, with values ranging from 0 to 100. The current “Extreme Fear” reading indicates that the market has plunged deeply into the fear zone, with investors selling off risk assets in search of safe havens.

The most concerning news about Bitcoin today is the breach of the psychological barrier of 90,000 USD. This price level has been regarded as a key support for the past few months, and traders generally believe that as long as it holds above 90,000 USD, the bull market structure will not be broken. However, once it falls below this threshold, bearish signals from a technical perspective will quickly spread, triggering more stop-loss orders and panic selling.

Analysts at Swissblock have stated that Bitcoin has reached a “cyclical fatigue point” as it approaches $90,000. They believe that Bitcoin needs to return to the range of $97,000 to $98,500 to regain upward momentum. Glassnode points out that there is a similar resistance level in the short-term holding cost base between $95,000 and $97,000. This means that even if Bitcoin rebounds from its current low point, it will still need to break through multiple resistance areas to re-establish an upward trend.

ETF fund outflows of 3 billion USD intensify panic

(Source: Farside Investors)

The Spot Bitcoin ETF listed in the United States ended five consecutive days of capital outflows on Wednesday, reporting a total inflow of $75,400,000. This rebound was mainly led by BlackRock's IBIT fund, which absorbed $60,600,000. However, this rebound was still not enough to offset the fund's loss of over $500,000,000 the previous day.

Grayscale's Bitcoin mini trust fund also recorded inflows. However, Fidelity and VanEck combined recorded outflows of $39,000,000. Recently, a wave of redemptions has swept across the entire industry. CoinShares data shows that last week, outflows from cryptocurrency exchange-traded products (ETFs) reached as high as $2 billion, setting the highest weekly record since February. Among them, American exchange-traded products accounted for nearly all.

Since November, the market capitalization of U.S. Spot Bitcoin ETFs has evaporated by nearly $3 billion, and this category is expected to experience one of the worst-performing months on record. This number is particularly shocking in today's Bitcoin news, as ETFs were originally seen as the main channel for institutional funds to enter the market, but have now become a major conduit for capital outflow.

Key Data on ETF Fund Flows

One-day rebound: $75,400,000 inflow (Wednesday), but over $500 million outflow the previous day.

Weekly Outflow: 2 billion USD (a new high since February)

November cumulative outflow: Nearly 3 billion USD (one of the worst months in history)

Main Outflow Funds: Fidelity and VanEck totaled $39,000,000

Due to the recent government shutdown causing delays in the release of key labor data, the market is closely watching the unusual uncertainty surrounding the December Federal Reserve meeting. This week, market expectations for a rate cut next month have fallen to 41.8%. The minutes from the Federal Reserve's October meeting indicate internal disagreements within the committee, which needs to seek a balance between a stubborn inflation rate of 3% and the risks of prematurely easing rates.

Liquidity constraints have been a recurring issue. Analysts at CryptoQuant pointed out that the same situation led to the fall of Bitcoin in November, as reduced liquidity often takes a heavy toll on speculative assets. Thursday's U.S. stock market reflected this anxiety. Boosted by Nvidia's optimistic earnings report, the market surged strongly in the early session but then pulled back. The Nasdaq index rose nearly 2.5% at one point in the early session before turning negative. The S&P 500 index also saw a slight decline.

Old Wallet Liquidation Exposes $1.3 Billion Liquidity Crisis

(Source: Arkham)

The most notable news about Bitcoin today is the massive sell-off from old wallets. The sell-off by large holders has intensified price pressure. Many old Bitcoin wallets have issued sell signals. At the beginning of November, BitcoinOG (1011short) has deposited about 13,000 Bitcoins worth $1.48 billion into CEX since October 1; while early adopter Owen Gunden has transferred 3,265 Bitcoins worth $364,500,000 to CEX since October 21.

In addition, Gunden transferred his last 2,499 Bitcoins (worth $228,000,000) to a cryptocurrency exchange on Thursday. According to Arkham, since October 21, Gunden's wallet has sold a total of about $1.3 billion worth of 11,000 Bitcoins, liquidating all his Bitcoin holdings.

Why is the sell-off of old wallets so important? These early adopters often hold Bitcoin for years or even over a decade, and their sell-off often marks a reassessment of the long-term outlook for the market. When holders with an extremely low cost basis choose to liquidate all their holdings at the current price level, it is usually seen as one of the signals of a market top.

Analysts indicate that the severe liquidation wave in October wiped out over $19 billion in leveraged cryptocurrency positions, disrupting the market structure. Liquidity has never fully recovered, making prices susceptible to even moderate sell-offs. In a market with ample liquidity, large sell-offs would be absorbed by new buying interest, limiting price impact. However, in the current environment of liquidity exhaustion, sell-offs from old wallets directly breach support levels, triggering a chain reaction.

Early Warning of the Ripple Effect of Risk Assets

In 2024 and 2025, the weakness in cryptocurrencies has often preceded pullbacks in the broader market. This pattern reappeared in early November when Bitcoin began to fall, shortly followed by signs of pressure in the stock market. Analysts remain cautiously reluctant to label it a direct warning, but they indicate that shared macroeconomic conditions, particularly the uncertainty of interest rates, increase the likelihood of simultaneous pressure on the market.

Global market reactions are mixed. Gold prices remain around $4,084 per ounce. Analysts point out that the strength of gold prices reflects market expectations that the Federal Reserve may avoid another rate cut in December. This divergence of strengthening safe-haven assets and weakening risk assets is a typical signal of declining risk appetite. Investors are shifting from high-volatility assets like Bitcoin to traditional safe-haven instruments like gold.

The core issue highlighted by today's Bitcoin news is: Will cryptocurrencies once again become the “canary in the coal mine” for a risk asset crash? Historically, Bitcoin has often started to decline weeks before a major stock market drop, as its 24/7 trading and high liquidity allow it to reflect changes in market sentiment more quickly. If this pattern repeats itself, the current plunge in Bitcoin may signal that the stock market is about to face a larger scale adjustment.