Bitcoin News Update: Institutions Take Advantage of Bitcoin Pullbacks as Selling Pressure Wanes

Bitcoin’s latest sharp decline has resulted in one of the most significant capitulation phases since the FTX debacle in 2022, with short-term investors realizing daily losses exceeding $900 million—a new all-time high for the asset.

. The recent downturn, which saw tumble almost 35% from its October high of $126,000 to a November low of $80,000, has sparked debate among traders about whether the worst is behind or more downside is imminent.

Broader economic instability and changing expectations for U.S. interest rates have intensified the volatility.

, now given a 69% probability by derivatives traders, has fueled price swings as market participants weigh hopes for easier monetary policy against concerns of a growing tech and AI-fueled bubble . At the same time, U.S. spot ETFs, which previously attracted record investments, saw net outflows totaling $3.79 billion in November, with BlackRock’s alone experiencing a $523 million single-day withdrawal .

Yet, there are early signs that the market may be stabilizing.

Blockchain data shows that short-term holders (STHs)—typically the most sensitive to price swings—have largely depleted their selling capacity. The STH Net Realized Profit/Loss Ratio has dropped to levels that historically precede major market turnarounds, while the “Risk-Off Signal” indicator has , suggesting that selling pressure is easing. , BTC appears “close to establishing a bottom,” and they point out that a second wave of capitulation often signals a transition in market dominance from sellers to buyers.

Institutional moves also hint at cautious optimism.

, which held 5,398 BTC as of November 12, has continued to manage its crypto reserves prudently despite the downturn. Meanwhile, Harvard University has boosted its Bitcoin ETF exposure to $443 million, and Japan’s Metaplanet is preparing a ¥15 billion fund for BTC acquisitions, reflecting a long-term strategic approach .

Technical analysis also points to a possible recovery. Bitcoin’s price has held above important support levels, such as $85,204, with experts like Astronomer

that BTC will not close below its recent lows. Historically, periods of capitulation marked by three consecutive days of heavy selling volume have in Bitcoin’s past, with only one case resulting in a prolonged decline.

Nevertheless, certain risks persist.

is now at 35%, straddling the line between a routine correction and a severe bear market. Long-term investors (LTHs) continue to , and unexpected macroeconomic shocks—such as a deeper recession or regulatory changes—could hinder any recovery.

Experts remain divided on Bitcoin’s outlook for 2025.

and Bitwise foresee a rise to $200,000, contingent on Fed rate cuts and greater institutional involvement. More conservative estimates, such as the $100,000–$135,000 range from 101Blockchains, predict a period of consolidation . On the bearish side, veteran analyst Peter Brandt cautions that prices could fall to $58,000 before any significant rebound .

At present, the market stands at a pivotal moment.

, the Fed’s decision in December may prove decisive for the broader trend. Until then, Bitcoin’s direction is shaped by the ongoing battle between sellers who have largely exited and institutions that see value in buying the dip.

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