Bitcoin News Today: Bitcoin's Sell-Off: Will Institutional Buyers Stabilize or Deepen the Downturn?

Bitcoin's ongoing price decline has reignited debates over market dynamics, with economist Peter Schiff warning that the transfer of coins from long-term "OG" holders to less committed investors could deepen future selloffs. Schiff, a vocal critic of Bitcoin, argued that the cryptocurrency is "finally having its IPO moment," with liquidity now sufficient for early adopters to cash out. He emphasized that this shift from "strong" to "weak" hands increases the float of Bitcoin in circulation, making the market more susceptible to panic-driven selling.

Recent data underscores this trend. Over 400,000 BTC were offloaded by whales and long-term holders in October alone, contributing to a price plunge below $85,000. High-profile exits include Owen Gunden, an early Bitcoin adopter who sold his entire 11,000 BTC stash ($1.3 billion), and Robert Kiyosaki, author of Rich Dad, Poor Dad, who liquidated his $2.25 million BTC position. These moves reflect a broader pattern of profit-taking among OGs, raising questions about whether retail and institutional buyers can absorb the selling pressure.

The market's fragility has been further exposed by options-driven volatility. Bitcoin's 7.6% drop on Friday to $80,553 - the worst monthly performance since the 2022 Terra and FTX collapses - was exacerbated by gamma exposure, a phenomenon where market makers hedge positions by selling more as prices fall. Chris Newhouse of Ergonia noted that dealers are "short gamma" near key support levels like $85,000, meaning they must offload Bitcoin to maintain neutrality, amplifying downward momentum. The next critical level at $80,000 could reverse this dynamic, flipping dealers to "long gamma" and potentially stabilizing prices.

Yet not all analysts share Schiff's bearish outlook. Cathie Wood's Ark Invest highlighted a structural shift in Bitcoin ownership, with institutions absorbing selling pressure. U.S. spot ETFs and public companies have accumulated over 2.39 million BTC since early 2024. David Puell of ARK argued that this transition from individual to institutional hands could stabilize volatility over time, as corporate and ETF demand is more resilient to short-term market swings.

The divergence in perspectives reflects broader uncertainty. While Schiff warns of "weak" hands triggering panic, Bloomberg's weekly forecast notes that ETF outflows and on-chain metrics signal prolonged bearishness. The Fear and Greed Index hit 14 - a seven-month low - indicating extreme fear among traders https://www.fxstreet.com/cryptocurrencies/news/bitcoin-weekly-forecast-btc-drops-to-seven-month-lows-as-selling-pressure-intensifies-202511211101. Meanwhile, JPMorgan reported that Circle's USDC has surpassed Tether's USDT in onchain activity, driven by regulatory clarity https://www.coindesk.com/markets/2025/10/30/circle-s-usdc-overtakes-tether-s-usdt-in-onchain-activity-as-regulation-drives-shift-jpmorgan, suggesting macroeconomic factors may yet support a rebound.

Bitcoin's path forward remains contentious. Schiff's dire predictions contrast with Ark's optimism about institutional adoption, while market mechanics like gamma exposure and liquidity shifts complicate forecasts. With OGs continuing to offload holdings and institutions stepping in, the next phase of Bitcoin's cycle will likely hinge on whether new buyers can sustain prices amid persistent selling pressure.