Bitcoin is closing out one of its toughest months of the year, as U.S.-listed ETFs tied to BTC recorded a staggering $3.5 billion in outflows, marking their worst month since February 2025. The mass exit comes as Bitcoin once again slips below the $90,000 mark, fueling investor anxiety across the crypto landscape.
Bitcoin ETFs Outflows Create a Feedback Loop as BTC Drops Below $90K
According to a Bloomberg report, U.S.-based spot Bitcoin ETFs experienced their worst month yet in November 2025, recording a $3.5 billion outflow as investors sought safety. For months, Bitcoin ETFs have helped drive institutional adoption, pushing the price of BTC to new highs. However, November reversed that momentum, and BlackRock’s iShares Bitcoin Trust (IBIT) suffered the most, recording $2.2 billion in redemptions. Further, Bitcoin also reacted with a sharp decline below the $90,000 region.
Interestingly, several factors, including rising interest rates, strong yields in traditional assets, and a broader risk-off mood in global markets, drove the sell-offs. In addition, hedge funds unwinding basis trades, which rely heavily on ETF liquidity, added to the downward pressure. As these positions unraveled, redemptions accelerated, creating a feedback cycle: outflows pushed prices down, falling prices triggered more outflows, and the decline deepened.
Meanwhile, Bitcoin’s crash back below $90,000 was no surprise to market watchers, as Citi Research analyst Alex Saunders recently highlighted that every $1 billion withdrawn from ETFs can knock Bitcoin’s price down by about 3.4%. Thus, investors pulling $3.5 billion in spot Bitcoin ETFs in a single month is bound to have a negative effect on the premier cryptocurrency.
Market Outlook: Reset or Warning Sign for More Downside?
As Bitcoin continues to battle intense volatility, traders are now weighing what comes next. Some analysts, including Citi’s Alex Saunders, now warn that if outflows continue and no fresh capital flows in, BTC could test lower levels. According to Alex, BTC could crash to $82,000 by year-end in the event of a prolonged consolidation.
Others argue that what the market is experiencing might be a “reset” rather than a collapse: a wash-out of overly bullish positioning driven by speculative ETF flows, followed perhaps by a period of consolidation. If macro conditions improve via lower interest rates, renewed risk appetite, or fresh institutional allocation, Bitcoin could see renewed inflows.
At the moment, Bitcoin is changing hands at $86,429, representing a decline of 5.29% over the past 24 hours.
The CoinRemark Team
