Bitcoin ETFs outflows topped $3.5B in November, is BTC at risk of deeper losses?

U.S. spot Bitcoin ETFs have recorded their fourth consecutive week of net outflows in November, with $3.7 billion withdrawn so far. Will this continued exodus keep suppressing the price of the leading cryptocurrency as we head into December?

According to data from SoSoValue, the 12 spot Bitcoin ETFs have recorded $22.45 million in net outflows so far this week, following three consecutive weeks of outflows exceeding $1.1 billion each. This brings the total net outflows for November to $3.57 billion, a stark contrast from the strong positive performance they recorded in the prior two months, notably notching $3.53 billion in September and $3.42 billion in October.

The cautious stance from institutional investors reflects growing macroeconomic concerns over U.S. tariffs on major economies, including China, fading expectations of the Federal Reserve introducing another potential rate cut in December, and a strengthening U.S. dollar.

At press time, the Fear and Greed Index stood at 15, showing Extreme Fear in the market, a level it has hovered around since the middle of this month. Investors typically tend to reduce risk exposure during such periods, while the broader sentiment indicators show declining confidence across crypto markets.

Some investors may also be shifting attention to newer ETF products launched for other crypto assets such as Solana, XRP, Dogecoin, Litecoin, and Hedera, as diversification becomes a growing theme in the digital asset space.

The strong outflows over November have played a key part in Bitcoin’s ongoing downtrend this year. The bellwether crypto asset has fallen from $110,000 at the beginning of this month to under $87,000 at press time and remains 31% below its all-time high reached in October.

Unless the macro environment improves and Bitcoin resumes its upside rally, spot Bitcoin ETFs may continue to witness outflows in the upcoming sessions. 

Technical indicators have portrayed that Bitcoin could most likely continue to see losses as we head into December, a month that has historically been linked with increased volatility and mixed performance.

On the daily chart, Bitcoin has formed a death cross, a highly bearish pattern that occurs when the 50-day moving average crosses below the 200-day moving average. Such negative formations typically dampen market sentiment and could likely lead to further selling pressure in the short term.

At press time, Bitcoin (BTC) price was testing the $86,777 level, which aligns with the 23.6% Fibonacci retracement level.

If Bitcoin manages to hold above this level, which had acted as a key resistance area earlier this year, it could flip it into support and potentially drive the price toward the $94,000 to $95,000 zone, which aligns with the next Fibonacci level.

On the contrary, a drop below $86,000 could open the door for a deeper correction, with Bitcoin possibly heading toward its April low at $74,550.