Bitcoin News Today: Institutions Accumulate Bitcoin as Retail Investors Flee Volatile Market

Bitcoin's price dipped below $104,000 this week as long-term holders accelerated selling amid heightened market volatility, driven by geopolitical tensions and regulatory caution. The cryptocurrency's decline followed a $19 billion liquidation event after U.S. President Donald Trump announced new tariffs on China, triggering a sell-off from leveraged traders and institutional portfolios. At its peak in early October, Bitcoin had surged to $126,000, but the recent drop has reignited debates about its role in investment strategies and the risks of speculative trading .

The UK's Hargreaves Lansdown, the largest retail investing platform in the region, issued a stark warning to its 1.5 million clients, labeling Bitcoin "much riskier" than stocks and bonds. The firm emphasized the digital currency's lack of intrinsic value and its susceptibility to extreme losses, advising against relying on crypto for financial goals. Despite acknowledging Bitcoin's long-term positive returns, Hargreaves Lansdown reiterated its stance that the asset lacks the stability of traditional investments .

Market dynamics shifted as traders moved away from leveraged bets. Spot trading volume for Bitcoin surged past $300 billion in October, with investors favoring direct ownership over derivatives. Analysts noted this as a potential turning point for market stability, though volatility remains a concern. Over 1.6 million traders faced liquidations during the October crash, with long positions bearing the brunt of losses. The shift to spot markets reflects a broader trend toward accumulation, as exchange-held Bitcoin reserves fell to 2.38 million BTC, signaling coins are moving into long-term wallets .

Institutional players, however, continued to accumulate. MicroStrategy's Michael Saylor boosted STRC's monthly dividend to 10.5%, signaling confidence in Bitcoin's long-term value despite a $20 billion market cap drop for Bitcoin treasury firms in October. Meanwhile, Prenetics added 100 BTC to its treasury, expanding holdings to 378 BTC valued at $41 million. The health sciences firm, which raised $44 million in equity funding, aims to allocate most of its balance sheet to Bitcoin while scaling its IM8 health brand .

Bitcoin ETFs faced $488.43 million in outflows on October 30, led by BlackRock's IBIT, as investors cashed in amid price uncertainty. Yet, Solana ETFs saw $44.48M inflows, marking a fourth consecutive day of gains as capital rotated away from Bitcoin and Ether. Analysts attributed this to Solana's high staking yields and faster transaction speeds, drawing investors seeking diversification .

Despite the turmoil, some market observers remain cautiously optimistic. Coinbase reported $1.9 billion in Q3 revenue, driven by rising spot trading volumes and subscription services. The exchange's CEO highlighted the launch of CFTC-regulated perpetual futures as a growth catalyst. Meanwhile, REX Shares introduced the ULTI ETF, a volatility-focused fund targeting crypto-exposed stocks, signaling Wall Street's evolving strategies to harness market swings .