Bitcoin News Today: Service, Not Price, Defines Bitcoin's Value, Bitwise Asserts

Bitcoin's Value Anchored to 'Service' Despite Market Volatility, Bitwise Says

Bitcoin's recent price decline below $90,000 has reignited debates about its long-term value proposition, with Bitwise Asset Management's Chief Investment Officer, Matt Hougan, emphasizing that the cryptocurrency's worth lies in its utility as a decentralized digital wealth-storage tool. "Bitcoin's value is in its function rather than its form," Hougan wrote in a note to investors, arguing that its appeal stems from enabling individuals and institutions to preserve capital without relying on traditional intermediaries like banks or governments according to Bitwise.

The cryptocurrency's price has plummeted over 28% since hitting a record high of $126,000 in early October, trading at around $92,700 as of late November. This slide has erased 2025's gains and triggered widespread market anxiety, with over $19 billion in liquidations and $1 trillion in market value lost during an October selloff according to market data. Analysts attribute the turmoil to macroeconomic headwinds, including uncertainty around Federal Reserve interest-rate cuts and broader risk-averse sentiment according to Bloomberg.

Despite the volatility, institutional adoption of Bitcoin continues to grow. Harvard University's endowment recently tripled its stake in BlackRock's iShares Bitcoin Trust (IBIT), purchasing 6.8 million shares valued at $442.8 million-making it the university's largest public holding according to Bitcoin Magazine. Similarly, Abu Dhabi's Al Warda Investments and Emory University have significantly increased their Bitcoin ETF allocations, signaling a shift toward digital assets as part of diversified portfolios.

Contrasting Bitcoin's struggles, newer altcoin ETFs tracking Solana and XRP have attracted over $500 million in combined inflows since their launches, highlighting shifting investor appetites. The Solana ETFs, managed by Grayscale, Bitwise, and VanEck, now oversee $541 million in assets, while the XRP ETF from Canary Capital drew $250 million on its first day of trading according to CryptoSlate. These inflows underscore growing interest in alternative cryptocurrencies despite Bitcoin's dominance.

However, Bitcoin ETFs have faced sustained outflows, with U.S.-listed products losing over $4.2 billion across three weeks ending Nov. 14. BlackRock's IBIT and ETHA funds accounted for nearly 50% of these redemptions, shedding $2 billion combined. Analysts like James Butterfill of CoinShares link the outflows to macroeconomic uncertainties and selling pressure from crypto-native whale holders according to CryptoSlate.

Hougan's assertion that Bitcoin's value is service-driven contrasts with traditional asset models. Unlike Microsoft, which monetizes through subscription-based software services, Bitcoin's utility is accessed solely by owning the asset. "The demand for Bitcoin's service-digital, censorship-resistant wealth storage-drives its price, just as demand for Microsoft's tools influences its stock," he explained according to Bitwise. This decentralized model, however, leaves Bitcoin vulnerable to speculative trading and regulatory shifts, complicating its path to mainstream adoption.

Looking ahead, market participants remain divided. While some view the current correction as a buying opportunity, others warn of further declines, with options traders hedging against prices falling to $85,000 or $80,000. Harvard's increased Bitcoin holdings and the resilience of altcoin ETFs suggest that institutional confidence in crypto's utility persists-even as volatility and regulatory uncertainties loom large.