Bitcoin News Today: Crypto's Freezing Point: Market Fears Clash with Harvard's Bold Bitcoin Bet

The cryptocurrency market has plunged into a state of "extreme fear," with the Fear & Greed Index hitting a record low of 10 on November 16, according to Alternative Data. This marks the lowest level since late February and signals a "freezing point" in investor sentiment. The index, which aggregates volatility, trading volume, social media activity, market surveys, Bitcoin dominance, and Google Trends, reflects a sharp deterioration in confidence across major digital assets.

Bitcoin led the selloff, dropping over 5% in the past week to trade near $96,000-its lowest level since early March-as institutional outflows and macroeconomic uncertainty compounded losses. The broader market followed suit, with the CoinDesk 20 (CD20) index shedding 5.8% of its value. Analysts attribute the decline to a combination of profit-taking by long-term holders, leveraged positions being liquidated, and reduced liquidity in key trading pairs.

The sell-off has been exacerbated by macroeconomic headwinds, including rising U.S. Treasury yields and uncertainty around central bank policies. Jake Kennis, a senior research analyst at Nansen, noted that "the confluence of profit-taking and macro uncertainty has created a perfect storm for crypto," adding that institutional investors have been withdrawing from the market. Meanwhile, social media sentiment has deteriorated sharply, with crypto-related discussions on platforms like Twitter trending bearish.

Despite the bleak outlook, some institutional players remain bullish. Harvard University's endowment recently allocated $443 million to BlackRock's IBIT ETF, a move signaling confidence in Bitcoin's long-term potential. However, this contrasts with the current market dynamics, where even high-profile investors are reassessing risk exposure.