Bitcoin News Today: Crypto's Wall Street Ties Amplify Vulnerability as Bitcoin Hits Six-Month Low

Bitcoin fell to a six-month low amid a broader risk-off market mood driven by fears of AI-driven economic disruptions and geopolitical tensions, with professional traders navigating a complex landscape of institutional positioning and macroeconomic uncertainty. The cryptocurrency dropped to $103,778 on November 9, extending its decline from a peak of $126,000 in early October after a 20% selloff triggered by leveraged liquidations and a shift to safer assets. Despite the pullback, Bitcoin ETFs maintained strong institutional support, with total assets exceeding $130 billion as of November 7, even after six consecutive days of outflows totaling $2.9 billion. BlackRock's IBIT, the largest Bitcoin ETF with $80.58 billion in net assets, continued to attract inflows, suggesting that institutional investors remain cautiously positioned for a potential rebound.

The selloff coincided with a surge in crypto markets following President Donald Trump's announcement of a $2,000 tariff dividend for Americans, which temporarily lifted Bitcoin by 2% to $103,778 and pushed the total market cap to $3.5 trillion. Trump's tariff policies, which have escalated trade tensions with China and other nations, have become a key driver of macroeconomic sentiment, influencing both traditional and digital asset markets. Analysts noted that the crypto sector's integration with Wall Street has made it particularly sensitive to such policy shifts, as institutional capital flows react to perceived risks in global trade dynamics.

Technical indicators reinforced the bearish pressure. Bitcoin's recent attempts to reclaim $108,000 were met with resistance at short-term moving averages (30-day at $109,671 and 60-day at $112,949), signaling sustained selling pressure. While the 12-month chart showed a 120% year-to-date gain, the consolidation below key psychological levels raised questions about whether the recent outflows signaled panic selling or disciplined profit-taking after a rapid October rally. Historical patterns suggest that such pullbacks often precede renewed accumulation phases once market sentiment stabilizes, though the current environment remains clouded by AI-related anxieties and a broader risk-off trend.

Professional traders appear divided. Short-term traders are tightening stop-loss orders amid volatile swings, while longer-term investors, particularly those with exposure to Bitcoin ETFs, are maintaining positions, betting on a eventual rebound. The interplay between macroeconomic factors-such as Trump's tariff agenda and AI-driven economic fears-and technical dynamics will likely determine Bitcoin's near-term trajectory. For now, the market is in a holding pattern, with institutional confidence still intact but cautious.