Bitcoin News Today: Bitcoin's Selloff: Capitulation or Prolonged Downturn?

Bitcoin faces mounting sell-off pressure as short-term holders offload assets amid deteriorating market sentiment, according to on-chain data and industry analysis. Short-term holders (STHs) dumped 148,000 BTC at a loss over the past 48 hours, while sharks-wallets holding 100–1,000 BTC-posted a net outflow of 53.7k BTC, exacerbating downward momentum. The STH supply held at a loss surged to 4.9 million BTC, an eight-month high last seen when Bitcoin traded between $74,000 and $76,000. This mass capitulation reflects broader panic as Bitcoin's price tumbled below $100,000, trading near $96,041 at press time -a 5.91% daily drop and 8.7% weekly decline.

The selloff intensified as Bitcoin ETFs registered record outflows. On November 13, spot Bitcoin ETFs saw a $866.7 million in redemptions-the second-largest single-day withdrawal since their January 2024 launch, trailing only the $1.1 billion outflow on February 25. Grayscale's Bitcoin Mini Trust led the exodus with $318 million in redemptions, followed by BlackRock's IBIT at $257 million. The flight from Bitcoin ETFs coincided with a 25% drawdown from October highs, with the asset testing $94,890.52 support-a level not seen since early May 2025.

Institutional activity underscored the bearish sentiment. Harvard University's endowment made a rare foray into Bitcoin, allocating $443 million to BlackRock's IBIT. However, this move contrasted with broader institutional caution, as Bitcoin's fear-and-greed index plummeted to 10 -the lowest since late February-amid macroeconomic uncertainty and profit-taking.

Ethereum holders exhibited divergent behavior. Blockchain analytics firm Glassnode noted that Ethereum investors are more willing to spend and transact their coins compared to Bitcoin holders, who treat BTC as "digital gold". ETH's frequent movement reflects its role as "digital oil" powering decentralized applications, with long-term holders mobilizing old coins at three times the rate of BTC holders. Despite this, Ethereum's price slid to $3,208, down 4.5% weekly, as its ETFs also faced outflows.

CryptoQuant CEO Ki Young Ju predicted the cycle's bottom could reach $56,000 if current trends persist. He cited stagnant realized cap growth and a PnL index flipping to short positions as signs of widespread profit-taking by whales. VanEck's on-chain analysis reinforced this view, noting mid-cycle traders-not long-term whales-were driving the selloff, with coins held 3–5 years seeing significant outflows.

Bitcoin's path forward remains precarious. If STH selling continues without renewed spot demand, the asset risks testing $94,106 support. Conversely, stabilizing price action could spark a rebound toward $99,314, contingent on improved macro conditions and reduced liquidity pressure based on current analysis. The interplay of institutional positioning, macroeconomic shifts, and on-chain dynamics will likely determine whether this selloff marks a capitulation bottom or a prolonged consolidation phase.