Bitcoin News Today: Bitcoin's "Death Cross" Looms, But Institutions Push Ahead with Bold Bitcoin Bets

Bitcoin's Volatility Wanes Amid Institutional Adoption and Strategic Resilience

Michael Saylor, founder of MicroStrategy and a prominent Bitcoin advocate, has reiterated his confidence in the asset's long-term trajectory despite recent market turbulence. In a recent interview, Saylor noted that Bitcoin's volatility has declined significantly from its 2020 peak of 80% annualized swings to around 50% today. He projects further compression, estimating volatility could drop by five percentage points every few years, eventually aligning with 1.5 times the S&P 500's volatility. Saylor also emphasized that his firm, Strategy, is structured to withstand 80% to 90% drawdowns without operational disruption, a stance underscoring the growing institutional resilience in crypto markets according to Saylor.

The current Bitcoin price, which has dipped below $95,000-a 25% decline from its early-October peak-has triggered concerns about a potential "death cross," a technical indicator where the 50-day moving average crosses below the 200-day average. This event is imminent as Bitcoin's 50-day average nears $110,669, while the 200-day average stands at $110,459. However, Saylor and other analysts argue that such signals may signal oversold conditions rather than sustained downturns.

Institutional participation in Bitcoin continues to expand, with Harvard University's endowment recently allocating $443 million to BlackRock's iShares Bitcoin Trust ETF (IBIT), now its largest asset. This move follows similar investments by Abu Dhabi's Mubadala Investment Co., which tripled its Bitcoin holdings in months before the recent market correction. Meanwhile, MicroStrategy has bolstered its BTC reserves, adding 884 coins in November to push its total holdings to 641,692 BTC, valued at over $65 billion.

The growing institutional appetite contrasts with recent outflows from Bitcoin ETFs. November 2025 saw $2.33 billion in redemptions, the second-worst month for these funds, with BlackRock's IBIT and Grayscale's GBTC leading the exodus. Despite this, Saylor remains unfazed, arguing that Bitcoin's volatility is a natural byproduct of its maturation. He envisions a future where Bitcoin's performance aligns with 1.5 times the S&P 500's returns, a projection that hinges on continued institutional adoption and regulatory clarity.

Market sentiment has turned cautious, with the Fear & Greed Index hitting a 10-point "extreme fear" level, its lowest since late February. Bitcoin's recent 12% weekly drop has erased its 2025 gains, pushing the S&P 500 into a stronger rally. However, historical patterns suggest Bitcoin likely to catch up.

As the market tests historical patterns, Saylor's strategy of enduring volatility and long-term growth appears to gain traction among institutional players. With Bitcoin's volatility continuing to contract and major investors doubling down, the asset's role in diversified portfolios may solidify, even as short-term corrections persist according to Saylor.

Critics, including veteran trader Peter Brandt, warn that Bitcoin's current chart could mirror the soybean bubble of the 1970s, but Saylor dismisses such comparisons. He highlighted that Strategy's metrics, including its market net asset value (mNAV) of 1.11x, remain robust despite the downturn. The firm's shares (MSTR) have dipped 11.5% in five days, but Saylor remains confident in Bitcoin's ability to rebound.