Bitcoin News Today: Bitcoin's Volatile Plunge: Correction or Collapse?

Bitcoin fell below $90,000 for the first time since April 2025 before rebounding, signaling heightened volatility in a market grappling with "extreme fear" sentiment. The cryptocurrency's seven-day decline exceeded 5%, according to the Fear & Greed Index, which dropped to a nine-month low of 10, reflecting widespread unease among investors. The broader crypto market mirrored the downturn, with the CoinDesk 20 index losing 5.8% of its value over the same period.

The sell-off has been attributed to a convergence of factors, including profit-taking by long-term holders, institutional outflows, macroeconomic uncertainty, and leveraged positions being liquidated. Jake Kennis, a senior research analyst at Nansen, noted in an emailed statement that these dynamics have created a "confluence" of downward pressure. Meanwhile, Bitcoin's price action has sparked debate among analysts: some view the move as a temporary correction within a larger bullish cycle, while others warn of a deeper bearish trend.

Technical indicators offer mixed signals. While the Relative Strength Index (RSI) entered oversold territory, suggesting waning selling pressure, Bitcoin remains below key psychological levels, including $100,000, a threshold that has repeatedly acted as a barrier. A critical test will be whether the cryptocurrency can reclaim $100,300-a-level that has served as support since late April. According to analysts at BeInCrypto, failure to do so could trigger further declines.

The Net Unrealized Profit/Loss (NUPL) metric, which measures the aggregate profit or loss of all Bitcoin holders, has also hit a 12-month low of 0.40, reinforcing the case for a potential rebound. However, institutional activity remains a wildcard. A $870 million outflow from exchange-traded funds (ETFs) was reported last week, underscoring reduced demand from major investors. This aligns with broader market trends, as the S&P 500 and Nasdaq showed mixed performance ahead of Nvidia's earnings report, which traders see as a bellwether for tech and AI sectors.

Michael Saylor, CEO of MicroStrategy, distanced himself from speculation that his firm was selling Bitcoin, reaffirming his commitment to accumulation. Saylor predicted the cryptocurrency would outperform gold and the S&P 500 by year-end. Yet, his comments did little to stabilize the market, as MicroStrategy's shares fell 4.2% amid Bitcoin's volatility.

The downturn has also impacted crypto-related equities. Robinhood's stock dropped sharply, reflecting broader risk-off sentiment amid uncertainty over Federal Reserve rate policies. Despite strong third-quarter results, including a 129% surge in transaction-based revenue, the platform's shares struggled as macroeconomic concerns overshadowed fundamental strengths.

Japan's bond market, meanwhile, deepened its selloff as investors worried about Prime Minister Sanae Takaichi's proposed economic package, which could strain public finances. The 40-year bond yield hit 3.68%, its highest since the instrument's 2007 debut, highlighting global caution ahead of potential fiscal expansion.

In the ETF space, outflows dominated most sectors, with the iShares Bitcoin Trust ETF shedding $200.73 million last week as Bitcoin fell over 7%. Conversely, gold ETFs attracted inflows, with the SPDR Gold Shares ETF gaining $289.27 million, signaling a flight to safety.

Bitcoin's path forward hinges on its ability to retest and hold key resistance levels. Analysts at Bitstamp noted that a breakout above $97,500 with strong volume could reignite bullish momentum, while failure to do so might prolong the bearish trend. For now, the market remains in a delicate balancing act-between capitulation and conviction, correction and collapse.