Bitcoin News Today: Institutions Back Hedera as HBAR Crumbles

HBAR, the native token of Hedera Hashgraph, has plunged below a critical support level of $0.1600, triggering concerns of a 20% correction as bearish sentiment dominates despite recent DeFi advancements. At press time, the token fell 4%, with derivatives data reflecting a sharp decline in futures open interest and a reversal of funding rates to negative territory. The move underscores a waning appetite among traders, as futures open interest dropped 5.96% in 24 hours to $121.31 million, signaling reduced leverage and position closures. Simultaneously, the OI-weighted funding rate flipped to -0.0079%, with short holders now paying a premium to maintain positions.

The sell-off contrasts with institutional interest in Hedera, as the Canary HBAR ETF recorded $5.37 million in net inflows on Thursday, the first positive flow in five days. This coincided with the integration of Wrapped Bitcoin (WBTC) on the Hedera blockchain, a collaboration with BitGo and LayerZero to enhance liquidity. WBTC, a tokenized version of Bitcoin on Ethereum, aims to expand Hedera's DeFi ecosystem by enabling BTC-backed services. Despite these efforts, retail demand remains muted, with HBAR down 10% weekly after breaking a key resistance trendline formed by July 27 and September 18 peaks.

Technical analysis reveals a deteriorating outlook for HBAR. The token has carved a descending channel, with volume spiking 94% above average during a Nov. 16 distribution event involving 168.9 million tokens. A subsequent 2.2% drop to $0.1472 further entrenched the bearish bias, with $0.1457 now a critical support level. Analysts warn that a breakdown below this threshold could accelerate the 20% correction, while a rebound faces immediate resistance at $0.1488.

The broader crypto market has mirrored HBAR's struggles, with total capitalization falling below $3.26 trillion - a 24% decline from October 7 highs. Bitcoin (BTC) has extended its slump below the psychological $100,000 mark, exacerbating risk-off sentiment. Hedera's 20% potential drop aligns with the crypto market's bearish trajectory, which has erased $1 trillion in value since October.

While WBTC's integration represents a strategic pivot for Hedera, the immediate challenge lies in stabilizing price action amid deteriorating technicals and waning market confidence. Institutional inflows and DeFi innovation may provide a counterweight, but for now, bears hold the upper hand in what appears to be a pivotal moment for the token.