Bitcoin Encounters Ongoing Sell-Off Amid ETF Outflows and Holder Exits

• ETF Outflows Surge: Over $3.5 billion exited Bitcoin ETFs in November, the largest monthly withdrawal since February, signaling reduced institutional interest.

• Stablecoin Capital Declines: The stablecoin market cap dropped $4.6 billion through November 1, with $800 million leaving crypto for fiat last week alone.

• Long-Term Holders Sell: Veteran investors are cashing out, contributing to a 30% drop in total crypto market cap from $4.28 trillion to $2.99 trillion since early October.

Discover why Bitcoin is falling in November 2025 amid ETF exits and holder sales. Explore impacts on Ethereum and Solana. Stay informed on crypto trends and prepare for FOMC decisions—read now for expert insights.

Why Is Bitcoin Falling in November 2025?

Bitcoin’s price drop in November 2025 stems from a combination of institutional outflows, reduced market inflows, and sales by long-term holders, exacerbated by broader market pressures. Trading at approximately $91,000, it has declined 28% from its October peak of $126,000, representing the steepest monthly fall since June 2022. This downturn reflects cooling investor sentiment ahead of key economic events like the December 9 FOMC meeting.

What Are the Main Causes of Bitcoin’s Recent Decline?

The primary drivers include significant withdrawals from Bitcoin exchange-traded funds (ETFs), a contraction in stablecoin supply, and liquidation events that have eroded market confidence. According to data from 10X Research, more than $3.5 billion has been withdrawn from Bitcoin ETFs this month, the highest outflow since February. Markus Thielen, founder of 10X Research, notes, “That indicates that institutional investors have stopped allocating into bitcoin. These ETFs have turned into sellers, and as long as they keep selling, I think the markets will struggle to stay up or rebound.”

Compounding this, stablecoin issuance has slowed markedly, a critical indicator of fresh capital entering the crypto ecosystem. DeFiLlama reports a $4.6 billion decrease in stablecoin market capitalization through November 1. Last week, approximately $800 million shifted from crypto to fiat currencies, per 10X Research figures. Thielen adds, “Money is not just failing to come in, it’s actually leaving the crypto market. That’s why bitcoin dominance is failing to pick up.”

Earlier in the month, Bitcoin experienced a brief uptick following hints from the Federal Reserve about a potential December rate cut. However, Thielen views this as a temporary “short-term, oversold reaction” likely to dissipate before or during the FOMC meeting. Even if rates are lowered, he anticipates a cautious, hawkish adjustment rather than a bullish catalyst for sustained recovery.

A pivotal event on October 10 further intensified the sell-off, with a leveraged liquidation wiping out $19 billion in market value. The lingering effects of this episode continue to hinder stabilization, as evidenced by Bitcoin’s inability to reclaim higher levels. These factors collectively illustrate a market under strain, where outflows and reduced liquidity are dominating over potential positive signals.

Frequently Asked Questions

What Impact Have Bitcoin ETF Outflows Had on the November 2025 Price Drop?

Bitcoin ETF outflows totaling over $3.5 billion in November 2025 have directly pressured prices downward, marking the largest monthly exit since February. This shift from inflows to net selling by institutional investors has reduced demand, contributing to the 28% decline from October highs and signaling broader caution in the market.

Why Are Long-Term Bitcoin Holders Selling Now?

Long-term Bitcoin holders are selling in November 2025 due to cycle fatigue and personal financial needs after years of accumulation. Nicolai Søndergaard, research analyst at Nansen, explains, “There has been OG people selling every single cycle. I think they just reach that point where they decide, okay, maybe I’ve gotten old enough, and I want to use this money now for something else.” This activity has amplified the market downturn.

Key Takeaways

• Institutional Pressure: ETF outflows of $3.5 billion highlight waning institutional support, turning what were once demand drivers into selling forces.
• Liquidity Squeeze: A $4.6 billion drop in stablecoin market cap underscores capital flight, with $800 million exiting to fiat in a single week.
• Market-Wide Impact: The total crypto market cap has fallen 30% to $2.99 trillion; monitor FOMC outcomes for potential recovery signals or further volatility.

Conclusion

Bitcoin’s price drop in November 2025, driven by ETF outflows, stablecoin declines, and long-term holder sales, has created a challenging environment for the cryptocurrency market. With Ethereum down 38% and Solana over 40% from early October levels, the broader ecosystem feels the strain. As the December 9 FOMC meeting approaches, investors should remain vigilant for policy cues that could influence future trajectories, positioning themselves strategically for potential shifts in sentiment.

Bitcoin remains mired in a persistent downturn, with its value hovering around $91,000—a stark 28% retreat from the October all-time high of $126,000. This marks the cryptocurrency’s most severe monthly decline since June 2022, as a relentless sell-off persists unchecked. Multiple pressures, ranging from ETF redemptions to miner underperformance, are converging to exacerbate the situation.

No isolated trigger explains the fall; instead, it’s a confluence of institutional divestments, evaporating liquidity, and exits by veteran holders. Traders are bracing for the Federal Open Market Committee (FOMC) meeting on December 9, with scant evidence suggesting an imminent reversal. The unraveling begins with fundamental shifts in market dynamics.

ETFs Dump Bitcoin, Stablecoin Capital Dries Up

Institutional vehicles have become a major source of downward pressure. November has seen $3.5 billion in outflows from Bitcoin ETFs, the largest such exodus since February, as reported by 10X Research. This reversal from prior accumulation phases underscores a pivot in investor behavior. Markus Thielen, founder of 10X Research, observes, “These ETFs have turned into sellers, and as long as they keep selling, I think the markets will struggle to stay up or rebound.”

Parallel to this, the stablecoin sector—a barometer for incoming capital—has contracted sharply. DeFiLlama data indicates a $4.6 billion reduction in stablecoin market capitalization by November 1. In the preceding week, $800 million transitioned out of crypto into traditional fiat, according to 10X Research. Thielen elaborates, “Money is not just failing to come in, it’s actually leaving the crypto market,” which has prevented Bitcoin from gaining relative dominance.

A fleeting rally earlier this week followed Federal Reserve signals of a possible December rate reduction, but Thielen dismisses it as ephemeral. He predicts a fade-out around the FOMC gathering, describing it as an “oversold reaction” unlikely to endure. Even a rate cut, he contends, would likely be conservatively framed, insufficient to ignite a robust bull phase.

The October 10 leveraged liquidation event, which erased $19 billion in value, added lasting scars. Recovery has been elusive, leaving Bitcoin vulnerable to ongoing sentiment challenges.

Long-Term Holders Cash Out, Miners and Altcoins Collapse

Veteran Bitcoin accumulators are also contributing to the supply glut. Motivations range from profiting on cycle peaks to reallocating funds for real-world use. Nicolai Søndergaard, a research analyst at Nansen, comments, “There has been OG people selling every single cycle. I think they just reach that point where they decide to use this money now for something else.” This pattern of periodic realizations is intensifying the current correction.

The ripple effects extend across the digital asset landscape. The overall crypto market capitalization has plummeted 30% from $4.28 trillion on October 6 to $2.99 trillion today. Ethereum has shed 38% since early October, while Solana has declined more than 40%. Søndergaard suggests that revitalization depends on renewed ETF inflows or corporate acquisitions, neither of which is materializing.

Consider MicroStrategy, which halted its streak of Bitcoin purchases after six consecutive weeks; the absence of such announcements this Monday signals cooling corporate enthusiasm. While MicroStrategy remains profitable on its holdings, many other digital asset treasuries are now facing losses, deterring further buys. Market participants are in a holding pattern.

Mining operations have suffered similarly, with stocks like IREN, Riot Platforms, and Marathon Digital Holdings (MARA) all down over 30%. Efforts to diversify into AI computing have not insulated them from the crypto winter’s chill.

This multifaceted downturn underscores the interconnected vulnerabilities in the Bitcoin ecosystem. Institutional caution, liquidity withdrawal, and holder behavior are key pillars of the November 2025 decline. As economic policy decisions loom, the path forward hinges on restored confidence and capital re-entry. For now, the market navigates choppy waters, with Bitcoin’s resilience tested amid these headwinds.