Bitcoin Drops Below $90,000 for the First Time Since April as ETF Investors Fall Into the Red

According to new data shared by Glassnode’s Sean Rose, the flow-weighted average cost basis across all U.S. spot Bitcoin ETFs sits at roughly $89,600, and Bitcoin’s slide beneath that line means ETF buyers, both retail and institutional, are now underwater.

The shift comes after a sharp day of outflows. Based on the latest daily data, several major issuers recorded $254 million in outflows on 17th of November.

This is the first coordinated wave of ETF losses since the products launched, and it is testing investor conviction more forcefully than at any time this year. The ETF wrapper was marketed as the regulated, low-friction way to access Bitcoin, but the current drawdown is a reminder that Wall Street infrastructure doesn’t eliminate Bitcoin’s extreme volatility.

Price Action Turns Critical

Bitcoin’s fall below $90,000 breaks a multi-month support zone that held firm since late April. Market structure now hinges on whether buyers can reclaim the $90.5K–$92K range, which previously acted as a high-liquidity demand pocket.

Failure to rebound above that area raises the risk of a deeper slide toward mid-$80Ks, where a cluster of realized price bands and short-term holder support sits. Analysts warn that if funding rates stay negative and ETF flows continue trending red, the next leg lower could accelerate.

ETF Investors Face Their First Real Test

The average cost basis of $89,600 represents all Bitcoin purchased by ETFs since their launch, meaning this is the first moment the entire cohort has dipped underwater. Earlier drawdowns impacted shorter-term buyers, but long-term inflows kept the average above spot price.

Now:

• Retail buyers who piled into ETFs during the summer breakout are sitting on visible losses.
• Institutional allocators, who viewed ETFs as a safer entry point, are experiencing their first coordinated dip.
• Momentum traders who chased the rally above $100K are facing the sharpest drawdowns.

This shift is important because historically, Bitcoin drawdowns that put all new capital underwater trigger either:

• Capitulation, producing accelerated sell pressure, or
• Strong accumulation, where long-term investors absorb supply aggressively.
• The next few sessions will determine which path emerges.

What Comes Next?

Bitcoin’s reaction around $89K–$90K will define the narrative heading into December. ETF flows have been one of the strongest drivers of Bitcoin’s bull cycle, but the first cohort-wide loss event may temporarily weaken that tailwind.

Still, analysts caution against assuming a prolonged downturn. Prior cycles show that once ETF or institutional cost bases are challenged, long-term allocators often step in, not exit. And with global macro conditions remaining mixed but stable, the broader risk environment hasn’t dramatically shifted.

For now, all eyes remain on whether Bitcoin can reclaim the $90K handle quickly, or if this marks the beginning of its deepest correction since the spring.

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