Bitcoin has dropped below $90,000 as $2.9 billion was withdrawn from crypto ETFs in the past week, marking the largest net withdrawals on record in dollar terms for crypto funds. Macro uncertainty and forced liquidations have increased volatility, while bitcoin’s correlation to gold has weakened.

Investors have pulled a net $2.9 billion from crypto ETFs globally this month, totaling 1.7% of the $172 billion held in crypto assets. The largest crypto ETF, the iShares Bitcoin Trust ETF, lost $1.2 billion in November alone. Bitcoin’s value has plummeted almost 29% from its peak to below $90,000.

Bitcoin ‘whales’ are selling and taking profits at the highest rate since 2021, with the number of investors holding over 1,000 bitcoin steadily decreasing. Analysts attribute bitcoin’s fall to macro, liquidity, and sentiment pressures, including mixed signals from the US Federal Reserve about interest rate cuts and margin calls triggering liquidations.

The selloff in bitcoin has been amplified by leveraged positions being liquidated and longstanding investors booking profits, while correlations with gold and Ethereum have weakened. Market indicators suggest a move toward risk aversion, with headlines of forced selling contributing to a sense of worry among investors.

Read more at Morningstar: Crypto ETF Investors Pull Billions as Bitcoin Slides Below $90,000