Bitcoin News Today: Bitcoin's Microsoft-Like Model Attracts Buyers as Price Slides

Bitcoin's price decline to $86,000 has intensified discussions around the cryptocurrency's proximity to the so-called "max pain" level-a point where short-term pain for investors is theorized to be highest-while simultaneously highlighting what some analysts describe as an attractive "discount" zone for long-term buyers. The drop follows a month of sustained bearish pressure, with Bitcoin trading near critical support levels and institutional players weighing in on its evolving role in global finance.

Bitwise Asset Management's Chief Investment Officer, Matt Hougan, emphasized that Bitcoin's value lies in its utility as a decentralized digital wealth-storage service, rather than its price fluctuations. "The reason Bitcoin's price is up 28,000% over the last ten years is that more people want to store wealth digitally without intermediaries," he wrote in a note to investors according to a note. Hougan argued that Bitcoin's demand-driven model-similar to Microsoft's subscription-based software services-positions it as a unique asset class, with its value determined by how many users seek its censorship-resistant properties. This perspective contrasts with traditional valuation metrics, as Bitcoin lacks a central provider or recurring revenue streams.

Institutional adoption of crypto assets continued to expand, underscored by Bitwise's recent launch of the Bitwise XRP ETF on the New York Stock Exchange. The product, which provides exposure to XRP, the native token of the XRP Ledger, reflects growing demand for digital assets that facilitate global payments and asset tokenization. Bitwise CEO Hunter Horsley described the ETF as a gateway for investors to access an asset "reshaping how money moves worldwide," citing use cases ranging from U.S. Treasuries to private credit.

Technical indicators, however, paint a bearish near-term picture. Bitcoin remains below key moving averages and faces critical support at $83,111, a level previously tested in April. Ethereum and XRP are also struggling, with Ethereum trading below its 200-day EMA at $3,554 and XRP teetering above $2.00. The MACD and RSI metrics for both cryptocurrencies signal prolonged bearish momentum, with Ethereum's RSI approaching oversold territory. Analysts warn that a break below these supports could trigger further corrections, though a rebound toward EMAs remains possible if buyers step in.

The Federal Reserve's uncertain policy stance has added to the crypto market's volatility. Recent delays in key labor data and a mixed September jobs report have reduced expectations for rate cuts in December. Cleveland Fed President Beth Hammack reinforced a hawkish stance, cautioning against premature easing to avoid reigniting inflation. "Monetary policy should stay somewhat restrictive to guide inflation back to 2%," she stated, highlighting the Fed's prioritization of price stability over labor market support. This environment has left Bitcoin in a narrow trading band, with stablecoin reserves hitting a record $72.2 billion-potentially signaling sidelined liquidity that could fuel a rebound if macro conditions improve.

While short-term risks persist, long-term proponents remain bullish. Hougan noted that Bitcoin's appeal is likely to grow in an era of rising debt and digitization, with demand for its service expected to outpace supply constraints. Meanwhile, institutional infrastructure-such as Anchorage's partnership with Mezo to offer BTC-backed loans- continues to expand, further embedding Bitcoin into traditional finance.

As the market navigates these dynamics, the coming weeks will test whether Bitcoin can stabilize at current levels or face deeper corrections. For now, the interplay between macroeconomic uncertainty, technical breakdowns, and institutional innovation defines the crypto landscape.