Bitcoin News Today: Institutions Bet Big on Bitcoin Amid Crypto's Extreme Fear Selloff

Bitcoin's recent slide toward $92,000 has reignited debates over the health of the crypto bull market, with Fidelity Digital Assets analysts and technical indicators suggesting a correction may be underway. The world's largest cryptocurrency has erased its 2025 gains, trading near its yearly opening level amid a wave of risk-off sentiment, while Ethereum and XRP hover near critical support levels.

Technical analysis highlights mixed signals. The Relative Strength Index (RSI) for Bitcoin has rebounded to 34 after flirting with oversold territory, but the Moving Average Convergence Divergence (MACD) remains bearish, with the blue line staying below the red signal line. Meanwhile, Ethereum's RSI crossed into bullish territory at 37, though a Death Cross pattern - where the 50-day EMA dipped below the 100-day EMA - has reinforced downward pressure. For XRP, a rebound above $2.40 could signal short-term recovery, but traders remain wary of profit-taking that could trigger a reversal toward $2.07 according to technical analysis.

Fidelity's Bernstein Research team argues the 25% drop from Bitcoin's October high of $126,000 reflects a short-term correction rather than a full-blown bear market. The analysts note that long-term holders have sold roughly 340,000 BTC ($38 billion) over six months, much of it absorbed by spot ETF inflows and corporate treasuries. Institutional adoption continues to grow, with Bitcoin ETFs now holding 28% of the asset, up from 20% year-end 2024, despite $3 billion in outflows over three weeks.

Market sentiment remains in "extreme fear," with the Fear and Greed Index hitting 10 - the lowest since late February - as volatility, weak trading volume, and social media pessimism amplify risk aversion. Bitcoin's dominance in the crypto market has persisted, but broader altcoin losses have deepened the selloff. Ethereum's price fell to a four-month low under $3,000, driven by macroeconomic concerns including U.S. government shutdown risks and AI sector uncertainty.

Institutional moves hint at long-term confidence. Bitwise Asset Management, which launched an XRP ETF on the NYSE, emphasizes Bitcoin's value as a "digital wealth-storage service" unmediated by banks or governments. Meanwhile, KindlyMD (Nakamoto Capital) allocated $45 million to Bitcoin-treasury companies like Treasury BV and Metaplanet Inc., viewing the asset as a strategic tool for compounding shareholder value.

The path forward hinges on Bitcoin's ability to reclaim key levels. A break above $100,000 could reignite risk-on sentiment, while a sustained drop below $88,000 might signal deeper trouble. Analysts like Michaël van de Poppe stress the importance of liquidity in shaping the next move, with trillions in short positions potentially vulnerable to a rebound. For now, the market remains in a fragile equilibrium - caught between capitulation and cautious optimism.