Bitcoin Updates: Economic Uncertainty and Federal Reserve Indecision Trigger Massive Bitcoin ETF Withdrawals

In early November, Bitcoin's value dropped below $100,000, sparking a surge in withdrawals from U.S. spot

exchange-traded funds (ETFs) as both institutional and individual investors rushed to reduce their positions. , BlackRock’s IBIT, the largest Bitcoin ETF, experienced $257 million in outflows on November 13 alone, pushing total net outflows from Bitcoin ETFs to $870 million—marking the second-largest daily withdrawal since their inception. This was the third straight week of net redemptions, with $622 million leaving these funds over the week .

Market pressures have intensified as economic uncertainty and changing risk tolerance affect sentiment. to lower interest rates, combined with the threat of a government shutdown and the Secured Overnight Financing Rate (SOFR) falling to 3.92%—its lowest in two years—have made investors more cautious. Blockchain data indicates that Bitcoin’s price drop has resulted in $920 million in liquidations, with $749.75 million coming from long positions, .

BlackRock’s ETF redemptions are part of a wider selloff across the market.

(ETH) and also saw declines, in outflows on November 13—the highest since October. The total value of the cryptocurrency market fell to $3.36 trillion, in just 24 hours.

Experts point to reduced institutional interest and minimal retail involvement as reasons for the outflows. Hedge funds have raised their crypto allocations to 55% from 47% in 2024, but

about Bitcoin’s near-term prospects. Significant redemptions have hit BlackRock’s IBIT, Grayscale’s GBTC, and Fidelity’s FBTC, at $318 million in outflows on the same day.

Technical analysis suggests Bitcoin remains under pressure, with prices testing support around $92,000 to fill a CME futures gap.

near this level, having started a significant rally in April 2025 from $95,000. Still, —who are offloading 104,000 BTC each month—could worsen the downturn.

Changes in regulations and policy could be crucial for the market’s next direction.

aimed at limiting the power of proxy advisors and index fund managers, such as , could further affect institutional voting rights and investment approaches. At the same time, to reform capital markets—including a planned dinner with Wall Street leaders—highlight the political factors influencing current market trends.

At present, Bitcoin is at a pivotal point. A recovery may depend on changes in Federal Reserve policy, resolution of the government shutdown, or renewed institutional interest. Yet, with ETFs continuing to lose assets and economic headwinds persisting, the outlook for a rebound remains unclear.

---