The post Bitcoin ETFs See ‘Dumb Money’ Wave appeared on BitcoinEthereumNews.com. Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead. Grab a coffee as influential crypto investors sound the alarm on what they describe as a dangerously fragile market, one propped up by short-term arbitrage flows and “dumb money” piling into spot Bitcoin ETFs without understanding the risks. Sponsored Sponsored Crypto News of the Day: Bitcoin ETFs Are Filling With ‘Dumb Money,’ Deeper Crash Ahead? Alliance DAO co-founder QwQiao reiterated his stark outlook on X (Twitter), that the next crypto bear market will be worse than most people expect. In the original post, he argued that a large wave of inexperienced buyers has entered the market in 2025, creating the conditions for a severe flush. “…dumb money who know nothing about crypto buying DATs and ETFs,” wrote QwQiao.   According to QwQiao, the market may require another 50% drawdown as these buyers sell off their holdings quickly, probably at a loss, usually due to panic or pressure. Only after this happens, the Alliance DAO executive says, can a solid long-term foundation form and the Supercycle resume its course. When QwQiao made these remarks, the Bitcoin price was trading at $111,756. Trading for $83,712 as of this writing, the pioneer crypto has already shed 25% of QwQiao’s prediction. A full 50% drawdown from $111,756 would see the Bitcoin price go as low as $56,068. Placeholder’s Chris Burniske echoed the sentiment, warning that the sell-side pressure from DAT (digital asset treasuries) investors is only just beginning. “The era of DAT selling has only begun. Just as we went up, so too will we go down,” he wrote, suggesting that structural flows, not sentiment, will dictate the next phase of the cycle. Sponsored Sponsored ETF-Driven Illusion Breaking Down The warnings emerge as… The post Bitcoin ETFs See ‘Dumb Money’ Wave appeared on BitcoinEthereumNews.com. Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead. Grab a coffee as influential crypto investors sound the alarm on what they describe as a dangerously fragile market, one propped up by short-term arbitrage flows and “dumb money” piling into spot Bitcoin ETFs without understanding the risks. Sponsored Sponsored Crypto News of the Day: Bitcoin ETFs Are Filling With ‘Dumb Money,’ Deeper Crash Ahead? Alliance DAO co-founder QwQiao reiterated his stark outlook on X (Twitter), that the next crypto bear market will be worse than most people expect. In the original post, he argued that a large wave of inexperienced buyers has entered the market in 2025, creating the conditions for a severe flush. “…dumb money who know nothing about crypto buying DATs and ETFs,” wrote QwQiao.   According to QwQiao, the market may require another 50% drawdown as these buyers sell off their holdings quickly, probably at a loss, usually due to panic or pressure. Only after this happens, the Alliance DAO executive says, can a solid long-term foundation form and the Supercycle resume its course. When QwQiao made these remarks, the Bitcoin price was trading at $111,756. Trading for $83,712 as of this writing, the pioneer crypto has already shed 25% of QwQiao’s prediction. A full 50% drawdown from $111,756 would see the Bitcoin price go as low as $56,068. Placeholder’s Chris Burniske echoed the sentiment, warning that the sell-side pressure from DAT (digital asset treasuries) investors is only just beginning. “The era of DAT selling has only begun. Just as we went up, so too will we go down,” he wrote, suggesting that structural flows, not sentiment, will dictate the next phase of the cycle. Sponsored Sponsored ETF-Driven Illusion Breaking Down The warnings emerge as…

Bitcoin ETFs See ‘Dumb Money’ Wave

Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee as influential crypto investors sound the alarm on what they describe as a dangerously fragile market, one propped up by short-term arbitrage flows and “dumb money” piling into spot Bitcoin ETFs without understanding the risks.

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Crypto News of the Day: Bitcoin ETFs Are Filling With ‘Dumb Money,’ Deeper Crash Ahead?

Alliance DAO co-founder QwQiao reiterated his stark outlook on X (Twitter), that the next crypto bear market will be worse than most people expect. In the original post, he argued that a large wave of inexperienced buyers has entered the market in 2025, creating the conditions for a severe flush.

According to QwQiao, the market may require another 50% drawdown as these buyers sell off their holdings quickly, probably at a loss, usually due to panic or pressure.

Only after this happens, the Alliance DAO executive says, can a solid long-term foundation form and the Supercycle resume its course. When QwQiao made these remarks, the Bitcoin price was trading at $111,756.

Trading for $83,712 as of this writing, the pioneer crypto has already shed 25% of QwQiao’s prediction. A full 50% drawdown from $111,756 would see the Bitcoin price go as low as $56,068.

Placeholder’s Chris Burniske echoed the sentiment, warning that the sell-side pressure from DAT (digital asset treasuries) investors is only just beginning.

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ETF-Driven Illusion Breaking Down

The warnings emerge as analysts increasingly point to the same underlying problem: ETF inflows have been widely misunderstood, as indicated in a recent US Crypto News publication.

Recent BeInCrypto reporting highlighted how BitMEX co-founder Arthur Hayes believes most of the flows into BlackRock’s IBIT, still the world’s largest Bitcoin ETF, have been arbitrage trades, not long-term conviction.

Hedge funds have been buying ETF shares while shorting CME futures to capture a basis spread, creating the appearance of bullish institutional demand.

When that basis compresses, institutions unwind the trade, triggering sharp outflows and mechanically pushing the Bitcoin price lower. Hayes argues that with these flows fading, Bitcoin “must fall” to reflect tightening dollar liquidity.

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A Market Reset Already Underway

Another recent BeInCrypto report showed analysts making similar conclusions, attributing the crash not to tariffs or hacks but to the collapse of the cash-and-carry trade.

As hedge funds unwind these leveraged positions, billions worth of BTC is sold off. Those funds were never invested in Bitcoin’s long-term future. Instead, they were used for yield farming.

The convergence of these factors explains why veteran insiders like QwQiao and Burniske are sounding unusually dire warnings.

Far from a typical correction, they argue the market is entering a cleansing phase where structural leverage, inexperienced capital, and arbitrage distortions must be flushed out.

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Chart of the Day

Bitcoin (BTC) Price Performance. Source: TradingView

Byte-Sized Alpha

Here’s a summary of more US crypto news to follow today:

Crypto Equities Pre-Market Overview

CompanyAt the Close of November 20Pre-Market Overview
Strategy (MSTR)$177.13$170.20 (-4.03%)
Coinbase (COIN)$238.16$234.56 (-1.52%)
Galaxy Digital Holdings (GLXY)$24.03$23.12 (-3.79%)
MARA Holdings (MARA)$10.24$9.88 (-3.52%)
Riot Platforms (RIOT)$12.78$12.34 (-3.44%)
Core Scientific (CORZ)$15.16$14.90 (-1.72%)
Crypto equities market open race: Google Finance

Source: https://beincrypto.com/bitcoin-etf-arbitrage-retail-volatility-us-crypto-news/

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