Bitcoin faced fresh selling pressure this week as major investment funds withdrew their money at a pace not seen in months.
The Spot Bitcoin ETF recorded approximately $866 million in withdrawals on Thursday, a sharp increase even after the U.S. government reopened after a 43-day shutdown, according to a report from Pharcyde Investors.
The flow of money out of these funds caught the attention of traders who expected a stronger reaction once political uncertainty eased.
Source: Farside Investors
Massive withdrawals hit major Bitcoin funds
This wave of outflows caused the U.S.-listed spot Bitcoin ETF to post its second consecutive quarter of losses, according to new data.
Separate research from SoSoValue points to nearly $897 million leaving these products on the same day, suggesting a widespread exit from institutional investors.
This change surprised some market participants, as ETF inflows were one of the main drivers of Bitcoin’s strong performance in early 2025.
Those who entered Bitcoin 6-12 months ago have a cost base of nearly 94,000.
Personally, I don’t think the bear cycle is confirmed unless we lose that level. I’d rather wait than jump to conclusions. pic.twitter.com/i9a5M0xnMW
— Ki Young-ju (@ki_young_ju) November 14, 2025
CryptoQuant’s Ki Yong-joo warned that the overall uptrend could weaken if Bitcoin falls below $94,000, the average purchase level for holders who entered in the past six to 12 months.
XRP funds shine amid market pressures
While Bitcoin funds are struggling, a new altcoin product has recorded an unusually strong debut. The Canary Capital XRP (XRPC) ETF had first-day trading volume of $58 million, according to Bloomberg ETF analyst Eric Balchunas.
This number narrowly beat the $57 million recorded by the Solana ETF earlier this year, but still ranked as the largest opening of the nearly 900 ETFs set to launch in 2025.
The report also notes that the Ether ETF faced $259 million in withdrawals on Thursday, while the Solana ETF added an additional $1.5 million, extending its 13-day inflow.
Interest rate cut suspicions added to slides
Bitcoin fell below the $100,000 line on Friday and was trading around $96,900 by midnight ET. The stock fell to an intraday low of $96,650, weighed down by fading expectations for a December interest rate cut by the US Federal Reserve.
Markets are currently pricing in a roughly 45% chance of a 25 basis point (bp) rate cut at the December 10-11 meeting, down from 63% a week ago.
The government shutdown left a gap in official inflation and jobs data, giving the Fed fewer signals to act on and making traders wary of taking risks.
Cryptocurrencies have mixed emotions heading into the weekend
Demand from institutional investors has cooled, as evidenced by repeated capital outflows and a slowdown in purchases of government bonds. Some analysts believe the market has been in a quiet bearish phase in recent months.
Bitwise’s Hunter Horsley said the economic downturn may be closer to an end than many expected, although broad risk markets are offering little support.
Some are warning that Bitcoin’s losing streak, now heading into its third week, could be extended if ETF withdrawals continue.
Featured image from Unsplash, chart from TradingView
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