Bitcoin News Update: Waning Expectations for Rate Cuts and Massive Bitcoin ETF Outflows Trigger Sharp Stock Decline

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Bitcoin News Update: Waning Expectations for Rate Cuts and Massive Bitcoin ETF Outflows Trigger Sharp Stock Decline

Bitget-RWA2025/11/21 01:04

By:Bitget-RWA

- U.S. stocks fell sharply on Thursday, with the Nasdaq Composite dropping over 2% amid fading Fed rate-cut hopes and Bitcoin ETF redemptions. - Bitcoin prices dipped to $86,100 as BlackRock's IBIT ETF recorded a $523M outflow, marking its worst redemption since January 2024. - Institutional investors added $5.7M in Bitcoin short positions, while FedWatch data cut December rate-cut odds to 46% from 93.7% a month ago. - U.S. spot Bitcoin ETFs face $3B in November outflows, with analysts noting a shift from

U.S. equities ended Thursday in the red, with the Nasdaq Composite tumbling more than 2%, capping off a turbulent week marked by diminishing hopes for Federal Reserve rate reductions and increasing withdrawals from

Bitcoin

exchange-traded funds (ETFs).

Bitcoin’s value dropped to $86,100 at one stage on Thursday, a significant fall from its $92,000 peak earlier in the week.

The cryptocurrency's slide

happened alongside a record $523 million withdrawal from BlackRock’s

iShares Bitcoin Trust

(IBIT) ETF on Tuesday—the largest single-day outflow since the fund debuted in January 2024. U.S. spot Bitcoin ETFs are now facing their worst month ever, with net outflows nearing $3 billion in November.

BlackRock alone accounted for 71% of these redemptions

, highlighting the fund’s significant impact on the market.

The downturn accelerated as major investors shifted to a more cautious approach.

Smart money traders added $5.7 million

in total short bets on Bitcoin over the past day, indicating a pessimistic outlook. At the same time,

the probability of a 25-basis-point rate cut

at the Federal Reserve’s December meeting dropped to 46%, down from 93.7% a month earlier, based on CME Group’s FedWatch tool. This change has dampened enthusiasm for riskier assets, with Bitcoin ETFs

shedding $2.96 billion in November to date

Although there was a short-lived recovery on Wednesday—when U.S. Bitcoin ETFs saw $75.4 million in net inflows for the first time in five days—the overall sentiment remains negative

BlackRock’s

IBIT

led this rebound with $60.6 million in new investments, though this was modest compared to its prior outflows. Experts warn that these withdrawals point to a broader shift in asset allocation rather than simple profit-taking. “The market is moving from a momentum-driven phase to one of caution,” said Wali Makokha, chief product officer at Mansa,

noting that Bitcoin's 30% pullback

from its October highs has challenged the confidence of newer ETF participants.

Bitcoin’s technical picture worsened last week when the asset

printed its fourth "death cross"

, a bearish indicator that appears when short-term momentum dips below long-term trends. While this formation has often come before market bottoms, ongoing liquidity constraints and reduced expectations for rate cuts have kept downward pressure on prices. Stablecoin reserves, which have reached a record $72.2 billion, could still offer some support for Bitcoin, though

analysts project a narrow trading range

of $60,000–$80,000 through December if the Fed maintains its current policy.

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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