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Bitcoin Updates: As Bitcoin Drops Below $100K, Investors Shift Focus to AI

Bitcoin Updates: As Bitcoin Drops Below $100K, Investors Shift Focus to AI

Bitget-RWA2025/11/21 02:50
By:Bitget-RWA

- Bitcoin fell below $100,000 for first time since June 2025, erasing $1 trillion in market value since October's $126,000 peak. - $3.2B in digital asset outflows over three weeks highlight waning institutional demand, with ETFs like iBIT/FBTC seeing record declines. - JEXAI's AI-powered platform claims 60% energy cost reductions and automated crypto portfolio management to address market volatility. - Fed policy uncertainty and negative futures-to-spot basis signal cautious positioning, with Bitcoin stabi

Bitcoin's value has

for the first time since June 2025, deepening a downward trend that has wiped out more than $1 trillion in market capitalization since its peak in October. After hitting $126,000 in early October, the cryptocurrency is now trading around $93,000. Experts are divided on whether this marks the start of a broader "mini bear market" or is simply a short-term liquidity-driven decline . Over the past three weeks, digital asset investment vehicles have experienced $3.2 billion in withdrawals, with U.S. spot ETFs seeing $1.1 billion in outflows in just one week—the fourth-largest weekly loss on record .

This downturn has led traders to reconsider their risk strategies, with many exploring new approaches amid increased market swings. JEXAI, an AI-driven crypto asset management platform, has gained attention as a possible answer,

designed to enhance energy efficiency, diversify across multiple currencies, and manage risk. The platform asserts it can cut electricity expenses by 60% while among cryptocurrencies such as Bitcoin and , aiming to help both new and experienced investors earn passive income.

Uncertainty around Federal Reserve policy continues to weigh heavily on the market.

in December, Bitcoin could remain stuck between $60,000 and $80,000 through the end of the year, according to XWIN Research Japan, as reduced expectations for rate cuts sap liquidity from risk assets. The Fed’s firm stance, , has made investors even more cautious.
Bitcoin Updates: As Bitcoin Drops Below $100K, Investors Shift Focus to AI image 0
The futures-to-spot price gap for Bitcoin turned negative for the first time since March, indicating traders are hesitant to use leverage .

Interest from institutional investors has also diminished.

(MSTR) went against the trend by acquiring 8,178 (worth $835.6 million) at an average price of $102,171 per coin, . Still, the broader market saw $1.8 billion in ETF outflows last week alone, indicating a shift in institutional sentiment . BlackRock’s iBIT and Fidelity’s FBTC both experienced sharp drops in assets under management, while stablecoin reserves climbed to a record $72.2 billion, suggesting that much of the liquidity remains on the sidelines .

Technical signals point to oversold territory,

. Analysts such as Edul Patel from Mudrex have observed that whales and market makers are increasing their long positions below $100,000, though any rebound is likely to encounter resistance at $95,000 . The CoinSwitch Markets Desk warns that sideways movement could continue until new macroeconomic drivers or institutional inflows appear .

Despite recent instability,

, pointing to stronger fundamentals from increased institutional participation and regulatory advancements. Nevertheless, with leveraged positions exposed in a market with limited liquidity and repo rates staying high , the outlook for recovery remains unclear. Market participants are keeping a close eye on the Fed’s December announcement and any shifts in sidelined liquidity to gauge Bitcoin’s next direction.

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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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