Bitcoin News Today: Institutional Fatigue and Macro Fears Send Bitcoin to 7-Month Low

Bitcoin Plunges to 7-Month Low as Crypto Market Reels From Risk Aversion

Bitcoin fell to a seven-month low below $95,000 on Friday, extending a selloff driven by profit-taking, institutional outflows, and macroeconomic uncertainty. The cryptocurrency's decline mirrored a broader market downturn, with the CoinDesk 20 index losing 5.8% of its value over the week. Market sentiment hit "extreme fear" levels, as the Fear & Greed Index dropped to 10-the lowest reading since late February 2025.

The sell-off accelerated as investors shifted to safer assets amid concerns over high valuations in riskier markets, particularly tech stocks. Outflows from spot Bitcoin ETFs surged to $866.7 million on Thursday, the highest since early August, according to CoinGlass data. Meanwhile, Bitcoin's liquidity has dwindled, with market depth-a measure of resistance to price swings-falling from $766 million in early October to $535.2 million this week. Analysts attribute the volatility to reduced institutional buying and leveraged long positions unwinding.

"The selloff is a confluence of profit-taking by LTHs [long-term holders], institutional outflows, macro uncertainty, and leveraged longs getting wiped out," Jake Kennis, a senior research analyst at Nansen, said in an email statement. The decline has also reignited fears of a prolonged correction, with the probability of a December Federal Reserve interest rate cut now below 50%.

Rumors of corporate Bitcoin sales further exacerbated the downturn. MicroStrategy, the largest corporate holder of Bitcoin, faced speculation it was offloading its holdings, sparking panic in the market. However, CEO Michael Saylor denied the reports, reiterating the company's commitment to accumulating the cryptocurrency. Despite his reassurances, MicroStrategy's net asset value premium dipped below 1x this week, signaling temporary pressure on its Bitcoin-backed valuation.

The selloff has also raised concerns about institutional fatigue. Markus Thielen, CEO of 10x Research, warned that the wave of institutional buying that propelled Bitcoin to record highs since early 2024 could amplify a correction if market sentiment deteriorates further. "Crypto markets are showing classic signs of fatigue," he said in an interview with Bloomberg.

While the broader market remains bearish, some institutional players are taking strategic positions. Harvard University's endowment disclosed a $443 million stake in BlackRock's iShares Bitcoin Trust (IBIT), marking a rare foray into crypto by a top-tier institutional investor. The move highlights growing acceptance of Bitcoin as a portfolio asset, even as prices remain volatile.

Bitcoin's next major test will be whether it can stabilize above $95,000, a level last seen in early March. With macroeconomic uncertainty persisting and liquidity remaining tight, analysts caution that further declines could follow unless buying pressure resumes.