Bitcoin News Today: Harvard triples Bitcoin ETF stake as crypto market crumbles

Bitcoin fell below $90,000 on November 18, marking its first drop to that level in nearly seven months as uncertainty over Federal Reserve rate cuts and delayed economic data fueled a risk-off market environment. The cryptocurrency traded at $90,091.5 by 00:22 ET, down 5.4% from recent peaks, with prices hitting an intraday low of $89,471.4 in the prior 24 hours. The decline accelerated after Bitcoin failed to hold key support levels, triggering a technical "death cross" on moving averages and amplifying bearish sentiment.

The selloff coincided with waning expectations for a December Fed rate cut, which now stands at approximately 45-52% probability, down sharply from over 63% a week earlier. Fed Chair Jerome Powell and other officials have signaled reluctance to ease monetary policy without clearer economic data, a challenge compounded by delayed releases due to the recent U.S. government shutdown. The lack of timely inflation and employment figures has left investors navigating a "data vacuum," exacerbating uncertainty ahead of the central bank's December 10-11 meeting.

Bitcoin's weakness was compounded by outflows from spot ETFs, with BlackRock's IBIT alone seeing a $463.1 million withdrawal on November 14-the largest single-day outflow since the product's launch according to Coinotag. Total outflows across U.S. Bitcoin ETFs reached $1.8 billion from November 10-14, according to Farside Investors data. Institutional selling pressure extended to altcoins, with Ethereum down 5.6% to $3,008.92 and XRP falling 4.4% to $2.15 according to Investing.com. The broader crypto market saw over $19 billion in liquidations in a single 24-hour period earlier this month, further destabilizing prices.

Despite the downturn, some institutional players are bucking the trend. Harvard University tripled its Bitcoin ETF holdings in the third quarter, acquiring 6.8 million shares of BlackRock's IBIT valued at $442.8 million. Emory University and Abu Dhabi's Al Warda Investments also expanded their crypto exposure, signaling cautious optimism amid the volatility. Meanwhile, privacy-focused coins like Zcash and Monero gained traction, rising 15.9% and 11.5% respectively, as investors rotated into perceived safe havens.

The market's extreme fear, as measured by the Crypto Fear and Greed Index at a record low of 10, underscores the fragile sentiment. However, analysts like Bloomberg's Eric Balchunas note that Harvard's investment-while small relative to its $57 billion endowment-represents a "validation" of ETFs as a regulated vehicle for institutional crypto exposure.

Bitcoin now faces critical support at $90,000, with a breakdown potentially opening the door to further declines toward $85,000. The path forward hinges on the Fed's policy clarity and the resolution of the data backlog, with the September nonfarm payrolls report due this week according to Investing.com. For now, the crypto market remains tethered to macroeconomic developments, its fate intertwined with the central bank's next move.