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Bitcoin extended its downturn once again, hitting a new seven-month low as selling pressure intensifies across both spot markets and exchange-traded funds (ETFs). Early Friday morning, the world’s largest digital asset dropped to nearly $85,000, marking another painful leg down in what has become one of the toughest weeks for crypto investors.
Bitcoin Drops $20,000 in Ten Days
Bitcoin’s decline has now erased more than $20,000 in value since November 11, when it briefly traded above $107,000. The rapid fall has renewed concerns about whether bearish sentiment is taking full control of the market.
Analysts across the industry are sounding cautious, noting that long-term holders remain relatively steady, but short-term traders and ETF participants are facing steep losses. According to data shared by Jim Bianco of Bianco Research, the average Bitcoin ETF investor is now underwater following the latest wave of sell-offs.
ETFs Face Their Worst Week of Outflows
While Bitcoin’s price action has drawn attention, the ETF landscape has been equally alarming. Outflows across major spot Bitcoin ETFs have accelerated sharply, adding significant downward pressure on the market.
Data from FarSide shows that total Bitcoin ETF outflows on Thursday reached a staggering $903.2 million, one of the highest daily withdrawal totals in recent months. Although Wednesday briefly saw a small net inflow of $75.4 million, the positive momentum didn’t last.
For the week so far, net outflows have reached $1.455 billion, signaling that institutional investors and retail participants are pulling funds out at an unusually fast pace.
BlackRock’s IBIT Breaks Its Own Outflow Record
One of the most notable developments this week has been the persistent withdrawals from BlackRock’s iShares Bitcoin Trust (IBIT). Despite being the strongest-performing ETF since launch, IBIT is now experiencing sustained selling pressure.
In the last four trading sessions alone, IBIT saw $1.09 billion leave the fund. This marks the longest and most significant outflow streak in the ETF’s history.
Research teams from major institutions, including JPMorgan, believe the ongoing outflows are contributing directly to Bitcoin’s price decline. When investors redeem their ETF shares, issuers must sell actual Bitcoin, adding further weight to the market.
Japan’s Stimulus News Adds Macro Pressure
Some analysts believe that Thursday’s early-morning plunge may have been accelerated by macroeconomic events rather than crypto-specific trends. Shortly before the sell-off, Japan’s Prime Minister Sanae Takaichi approved a $135 billion economic stimulus package aimed at helping households deal with rising living costs.
While stimulus measures can sometimes support risk assets, the market interpreted this announcement as a sign of potential volatility in currency markets. Bitcoin, which often reacts sharply to major macroeconomic news, slipped shortly after the announcement.
Traders fear that large global stimulus packages may influence interest-rate expectations or strengthen the U.S. dollar—both of which can add pressure to crypto markets.
Whale Selling Adds Fuel to the Downtrend
Aside from ETFs and macro developments, on-chain analysts have identified another major factor in Bitcoin’s decline: heavy selling from a well-known long-term whale.
Data from Arkham Intelligence indicates that a prominent early Bitcoin holder, known as Owen Gunden, has liquidated their entire BTC stack—worth around $1.3 billion—over the past month. The final batch, roughly $230 million, was moved to Kraken on Thursday.
Large whale sales typically influence trader sentiment and may trigger additional selling from automated trading systems or short-term speculators. The timing of the whale’s liquidation, combined with ETF outflows, created conditions for a deeper pullback.
Short-Term Traders Are Capitulating
Several analysts note that short-term Bitcoin holders—those who purchased within the last few months—appear to be showing signs of capitulation. Historically, these phases often precede a market bottom, but they also come with sharp volatility.
With Bitcoin now trading far below its recent peak, many short-term investors are being forced to exit positions at a loss, which increases selling pressure.
What Comes Next for Bitcoin?
In the short term, Bitcoin’s outlook remains uncertain. Analysts are watching whether ETF outflows slow down and whether macroeconomic conditions stabilize. Despite the ongoing turbulence, long-term investors maintain that Bitcoin’s structural fundamentals remain intact.
However, for now, ETF participants and short-term traders are feeling the impact of the downturn, as Bitcoin tries to find a new support zone after one of its steepest weekly losses of the year.
