Bitcoin News Today: Bitcoin's Plunge: Capitulation or Correction?

Bitcoin's price plunged below $108,000 on Nov. 3, 2025, as macroeconomic uncertainty, institutional outflows, and whale selling pressures converged to erode market confidence. The cryptocurrency, which had traded as high as $112,000 in mid-October, now faces a critical juncture, with analysts split on whether the decline signals a capitulation of the four-year bull cycle or a temporary correction ahead of a year-end rally, according to a Cryptonews report.

The sell-off accelerated amid a lack of U.S. labor data due to a government shutdown, leaving traders without key macroeconomic signals, the Cryptonews report said. Bitcoin's intraday range narrowed between $107,500 and $109,800, reflecting low-volume indecision. A break below $107,000 could expose deeper support at $105,500, while a rebound above $110,200 might reignite a push toward $114,000. Ethereum also faltered, trading at $3,723, down 4.67% on the day, as it struggled to reclaim the $3,950 resistance level, the Cryptonews report added.

Institutional activity worsened the selloff. U.S. Bitcoin spot ETFs recorded $191.6 million in net outflows on Oct. 31, marking the largest since August, while Ethereum ETFs saw $184 million in outflows. The exodus coincided with Bitcoin trading at a discount on Coinbase for four consecutive days—the longest such streak since mid-August—indicating weak retail demand, according to a CoinCentral piece. Meanwhile, on-chain data revealed that long-term whale holders deposited $1.48 billion in BTC to exchanges since October 1, fueling speculation about profit-taking, according to a CoinPedia update.

The bearish momentum was underscored by the Crypto Fear and Greed Index, which plummeted to 36, signaling extreme fear, the Cryptonews report noted. This follows a seven-year streak of strong October performance for Bitcoin, dubbed "uptober," which ended abruptly after a 5% monthly decline, the CoinCentral piece observed. Analysts at CryptoQuant noted that the 365-day moving average has historically signaled cycle tops, raising concerns about a potential 36% drop akin to 2018, as discussed in a CoinEdition analysis.

Yet amid the turmoil, corporate Bitcoin adoption continued to gain traction. Strategy, the treasury firm led by Mike Novogratz, purchased 397 BTC ($45.6 million) in late October, bringing its total holdings to 641,205 BTC valued at $47.49 billion, according to a Bitcoin Magazine report. The firm's aggressive accumulation contrasts with broader market weakness, highlighting diverging views on Bitcoin's near-term prospects.

Bullish voices, however, argue that the selloff is temporary. Tom Lee of Fundstrat reiterated a $200,000 year-end target for Bitcoin, citing seasonal strength in November and anticipated liquidity injections from the Federal Reserve, in a Yahoo article. The same article also reported Arthur Hayes of BitMEX predicting the Fed would deploy stealth quantitative easing via its Standing Repo Facility to alleviate liquidity strains caused by the government shutdown.

Technical indicators, meanwhile, suggest a coiled market. Bitcoin's volatility compressed to multi-week lows, with Bollinger Bandwidth near 15—a level that historically precedes major moves, the CoinCentral piece noted. Traders are watching the $112,000 resistance and $100,000 psychological support level, with a breakdown below the latter confirming a medium-term correction, as observed by CoinCentral.

The mixed signals have left investors in limbo. While some hedge funds and corporate treasuries remain net buyers, retail and institutional selling pressure persists. With the Bitcoin halving event approaching in 2026 and regulatory clarity emerging, the market's ability to stabilize in the coming weeks will be pivotal in determining whether this is a cyclical low or a deeper downturn.