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Bitcoin Market Braces For Volatility Surge Amid Record ETF Outflows And Wallet Shifts

The Bitcoin options market is witnessing record volatility levels, reaching the highest point since April, according to Glassnode.

This spike suggests that traders are bracing for potential major price swings, reflecting an atmosphere of intense anticipation and uncertainty as Bitcoin navigates turbulent market conditions.

Adding to the market’s uncertainty, Bitcoin is seeing a substantial reduction in active wallets. Over the past three weeks, there’s been a drop of 211,500 non-empty Bitcoin addresses—a sign of Fear, Uncertainty, and Doubt (FUD) often preceding bullish price rebounds. Meanwhile, Santiment reports an 11,600 drop in USDC wallets over a single day this past weekend, indicating fluctuating stablecoin activity.

Interestingly, Dogecoin wallets are on the rise, with an increase of 46,400 in just a week, suggesting speculative interest in memecoins, even after last week’s peak.

In a significant move, Mt. Gox recently transferred 32,371 BTC (valued at $2.19 billion) across three new wallets.

Over the last four days, a total of 32,871 BTC ($2.22 billion) has been moved, including 296 BTC ($20.13 million) sent to B2C2 and OKX, leaving around 12,006 BTC ($810 million) in known Mt. Gox wallets.

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Bitcoin Spot ETFs Market Recorded Notable Outflows 

The U.S. Bitcoin ETF market has also been impacted, with a record outflow of $540.9 million on November 4—just before the U.S. election and marking the second-largest outflow on record.

Notable funds like 21Shares (ARKB) and Bitwise (BITB) experienced significant withdrawals, though BlackRock’s ETF (IBIT) saw an inflow of 569 BTC ($38.6 million), hinting at continued institutional interest.

As Bitcoin faces this complex market phase with record volatility, substantial outflows, and shifting wallet behaviors, investors remain watchful, assessing whether these signals hint at an impending price rebound or further uncertainty ahead.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: ximagination/123RF // Image Effects by Colorcinch

Will Izuchukwu

Will is a News/Content Writer and SEO Expert with years of active experience. He has a good history of writing credible articles and trending topics ranging from News Articles to Constructive Writings all around the Cryptocurrency and Blockchain Industry.

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