Bitcoin News Today: BTC's Panic Selloff Ignites Institutional Bets on $200K Comeback

Bitcoin's 'fastest bear market' hides potentially positive year-end outcome for BTC

The cryptocurrency market is navigating one of its most aggressive downturns in years, with Bitcoin (BTC) tumbling below $90,000 and U.S. spot Bitcoin ETFs hemorrhaging over $3.79 billion in November outflows. Despite the sharp selloff, analysts and institutional players are cautiously optimistic, citing signs of buyer interest at lower levels and historical precedents for rebounds from extreme fear metrics.

The crypto Fear and Greed Index has plunged to 15, its lowest reading of the year, signaling extreme fear territory. However, this has historically coincided with eventual rebounds. For instance, in July 2024, the index hit 26 before Bitcoin surged from $54,000 to $106,000 within months. Similarly, Santiment data shows that retail traders' bearish sentiment often precedes market reversals, as institutional buyers step in during capitulation phases.

Bitcoin ETFs, once a pillar of institutional demand, have seen unprecedented outflows. BlackRock's IBIT, the largest U.S. spot Bitcoin ETF, lost $355.5 million in a single day on November 21, while the 11 U.S.-listed BTC ETFs collectively bled $3.79 billion in November according to data. This contrasts with Ethereum and smaller altcoin ETFs, which also faced outflows, and Solana (SOL) and XRP ETFs, which saw modest inflows. Analysts attribute the exodus to profit-taking and risk-off positioning as macroeconomic uncertainty persists.

Technical indicators paint a mixed picture. Bitcoin's price has tested critical support levels, including $90,000 and $85,000, while on-chain metrics show heavy selling pressure from long-dormant wallets. However, the RSI and stochastic oscillator are deeply oversold, and the asset is forming potential bullish patterns like a double bottom and hammer candlesticks. BitMine CEO Tom Lee argues that seller exhaustion could lead to a near-term bottom, while veteran trader Peter Brandt predicts a $200,000 target by Q3 2029.

The market's dynamics are further complicated by macroeconomic factors. A delayed Federal Reserve rate cut and mixed signals from tech stocks, including Nvidia's post-earnings rebound, have created a tug-of-war for BTC. Meanwhile, Japan's $135 billion stimulus package and El Salvador's continued Bitcoin purchases hint at long-term demand.

Despite the short-term pain, some investors view the dip as an opportunity. Strategy, a major BTC holder, increased its position by 16 times in the past week, while miners approach the 21 million coin limit. "This dumping is the best thing that could happen to Bitcoin," said Brandt, emphasizing that the next bull market could be years away but "worth the wait" according to analysis.