‘Dumb Money’ Surge in Bitcoin ETFs Raises Crash Fears | US Crypto News
Welcome to the US Crypto News Morning Briefing—your important rundown of crucial developments in crypto for the day forward.
Grab a espresso as influential crypto buyers sound the alarm on what they describe as a dangerously fragile market, one propped up by short-term arbitrage flows and “dumb cash” piling into spot Bitcoin ETFs with out understanding the dangers.
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 subsequent crypto bear market will probably be worse than most individuals count on. In the unique publish, he argued that a big wave of inexperienced patrons has entered the market in 2025, creating the situations for a extreme flush.
“…dumb cash who know nothing about crypto shopping for DATs and ETFs,” wrote QwQiao.
According to QwQiao, the market might require one other 50% drawdown as these patrons dump their holdings rapidly, in all probability at a loss, often because of panic or stress.
Only after this occurs, the Alliance DAO government says, can a strong long-term basis kind and the Supercycle resume its course. When QwQiao made these remarks, the Bitcoin worth was buying and selling 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 worth go as little as $56,068.
Placeholder’s Chris Burniske echoed the sentiment, warning that the sell-side pressure from DAT (digital asset treasuries) investors is simply simply starting.
“The period of DAT promoting has solely begun. Just as we went up, so too will we go down,” he wrote, suggesting that structural flows, not sentiment, will dictate the subsequent part of the cycle.
ETF-Driven Illusion Breaking Down
The warnings emerge as analysts more and more level to the identical underlying drawback: ETF inflows have been extensively misunderstood, as indicated in a latest US Crypto News publication.
Recent BeInCrypto reporting highlighted how BitMEX co-founder Arthur Hayes believes a lot of the flows into BlackRock’s IBIT, nonetheless the world’s largest Bitcoin ETF, have been arbitrage trades, not long-term conviction.
Hedge funds have been buying ETF shares whereas shorting CME futures to seize a foundation unfold, creating the looks of bullish institutional demand.
“They aren’t lengthy Bitcoin,” Hayes stated. “They solely play in our sandbox for just a few further factors over Fed Funds.”
When that foundation compresses, establishments unwind the commerce, triggering sharp outflows and mechanically pushing the Bitcoin worth decrease. Hayes argues that with these flows fading, Bitcoin “should fall” to replicate tightening greenback liquidity.
A Market Reset Already Underway
Another latest BeInCrypto report confirmed analysts making comparable conclusions, attributing the crash to not tariffs or hacks however to the collapse of the cash-and-carry trade.
As hedge funds unwind these leveraged positions, billions price of BTC is offered off. Those funds have been by no means invested in Bitcoin’s long-term future. Instead, they have been used for yield farming.
The convergence of those components explains why veteran insiders like QwQiao and Burniske are sounding unusually dire warnings.
Far from a typical correction, they argue the market is coming into a cleaning part the place structural leverage, inexperienced capital, and arbitrage distortions should be flushed out.
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Byte-Sized Alpha
Here’s a abstract of extra US crypto information to comply with immediately:
- MicroStrategy faces $9 billion outflow threat as index providers eye Bitcoin holdings.
- Nearly $2 billion wiped out in crypto liquidations amid brutal sell-off.
- Three altcoins to watch if Bitcoin drops beneath $80,000.
- Pi Coin holds good points in a purple market — Another breakout at 6.5%?
- How prediction markets might create crypto’s subsequent billion customers.
- Bitcoin appears to be like extra bullish than Ethereum as $4 billion options expire today.
- BitMine faces over $4 billion in unrealized losses because the digital asset treasury mannequin faces scrutiny.
- Peter Brandt says Bitcoin might attain $200,000, just not anytime soon.
- XRP price drops below $2 regardless of latest ETF approval.
Crypto Equities Pre-Market Overview
| Company | At the Close of November 20 | Pre-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%) |
The publish ‘Dumb Money’ Surge in Bitcoin ETFs Raises Crash Fears | US Crypto News appeared first on BeInCrypto.
