Bitcoin Updates: Institutional Investors Drive Bitcoin’s Strong Recovery Despite Market Volatility

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Bitcoin Updates: Institutional Investors Drive Bitcoin’s Strong Recovery Despite Market Volatility

Bitget-RWA2025/11/14 01:28

By:Bitget-RWA

- Bitcoin and risk markets plunged in late October-November due to macroeconomic uncertainties, institutional outflows, and sector corrections. - A 43-day U.S. government shutdown froze economic data and regulatory approvals, pushing Bitcoin down 17% to $104,370 amid fiscal policy uncertainty. - Institutional ETF outflows ($1.22B) and weak tech/AI sectors reflected broader risk-off sentiment, while Fed rate cut expectations dropped to 20%. - Market optimism emerged after shutdown resolution, corporate Bitc

In late October and early November, Bitcoin and broader risk assets saw a significant downturn, triggered by a mix of macroeconomic headwinds, institutional withdrawals, and industry-specific corrections. Nonetheless, recent events—such as the resolution of the U.S. government shutdown and renewed corporate

Bitcoin

accumulation—have fueled hopes for a market recovery.

The initial selloff intensified as the extended U.S. government shutdown halted essential economic data releases and regulatory processes. Bitcoin

dropped by more than 17%

from its October 6 high of $126,080 to $104,370 by mid-November, as concerns over fiscal policy and inflation dampened investor confidence.

Analysis indicates

that the shutdown—the longest in U.S. history—disrupted Treasury operations and postponed important economic updates, leaving investors without the data needed to anticipate the Federal Reserve’s next moves.

Institutional interest also appeared to weaken.

U.S.-listed spot Bitcoin ETFs

saw $1.22 billion in weekly outflows by November 7, highlighting a more cautious approach amid market turbulence. Meanwhile, leading ETFs such as BlackRock’s

iShares Bitcoin Trust

(IBIT) experienced variable inflows, with total assets

falling from a high

of $160 billion to $140 billion.

Experts link these outflows

to a general shift away from risk, rather than issues specific to Bitcoin, as technology and AI-related stocks also underwent corrections.

Bitcoin Updates: Institutional Investors Drive Bitcoin’s Strong Recovery Despite Market Volatility image 0

Broader economic trends further intensified the decline.

The Nasdaq Index declined by 2.3%

after Palantir CEO Alex Karp expressed doubts about the profitability of AI investments, reflecting increasing skepticism about the sector’s future growth. In addition,

uncertainty over the Federal Reserve’s dovish stance

persisted, with the probability of rate cuts by January 2026

dropping to 20%

from 49% at the start of October.

Disappointing earnings

from consumer-focused giants like Disney and Starbucks further unsettled the markets.

Despite these obstacles, early signs of a turnaround appeared when the Senate approved a bill on November 10 to end the 43-day shutdown.

Bitcoin climbed back above $106,000

, buoyed by renewed risk appetite and the reopening of SEC activities, which could allow crypto ETF reviews to proceed. Corporate investors also provided support: Strategy, the largest corporate holder of Bitcoin,

acquired 487 BTC

for $49.9 million, raising its total to 641,692

BTC

valued at $47.54 billion. This accumulation,

along with steady hash rates

and better exchange liquidity, pointed to the network’s underlying strength.

Technical signals also suggested a possible recovery. Bitcoin’s ability to remain above $105,000 established a key support level, with $102,500 acting as a buffer for short-term traders.

Derivatives data revealed falling funding rates

, indicating less speculative leverage—a positive indicator for more stable price movements.

Although risks persist, the combination of clearer fiscal policy, increased corporate involvement, and technical resilience suggests Bitcoin could be on the verge of a rebound. Still,

investors are staying cautious

, with many recommending waiting for a confirmed close above $105,000 before increasing their positions.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Bitget-RWA•2025/11/20 11:28

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Bitget-RWA•2025/11/20 10:42

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Bitget-RWA•2025/11/20 10:41