Bitcoin Updates: American Bitcoin Holders Pull Back While Asian Markets Strengthen Amid Changing Crypto Liquidity
- Coinbase's Bitcoin premium index hit -0.0499% on Nov 19, its widest negative level since Q1 2025, reflecting U.S. selling pressure and institutional profit-taking. - U.S. Bitcoin ETFs saw $2.47B in redemptions (63% of total outflows) as prices fell to 7-month lows, contrasting with rising Asian liquidity in spot markets. - Asian markets absorbed BTC inflows while U.S. capital retreated, signaling geographic liquidity reallocation rather than structural demand decline. - Macroeconomic factors including fa
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The ongoing negative trend since October 31 points to changing liquidity patterns, with U.S. funds pulling back from domestic crypto holdings. Experts link this to institutions locking in profits after a period of heavy buying, rather than a widespread market downturn. "This situation is similar to the stress seen in February, when the premium nearly reached -$138 as U.S. investors reduced their positions," one market analyst commented.
The softer U.S. market is also highlighted by unprecedented withdrawals from Bitcoin exchange-traded funds (ETFs). BlackRock's
The negative premium and ETF withdrawals are part of a larger picture of macroeconomic challenges. Diminishing expectations for Federal Reserve rate cuts and a stronger risk-off mood have accelerated the movement of capital away from riskier assets.
The short-term outlook for the market is still unclear. Although there was a brief period of stabilization in ETF flows, with $75.4 million in net inflows on November 19, institutional investors remain wary. Experts warn that if Bitcoin drops below crucial technical thresholds like $90,000, outflows could pick up speed. The next few weeks will be pivotal in determining whether this correction is a temporary adjustment or the start of a longer bearish trend.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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