Bitcoin News Today: Institutions, Sovereigns Boost Bitcoin Bets Amid Selloff, Signal Long-Term Confidence

Bitcoin's recent price volatility has sparked a notable shift in institutional and sovereign investment strategies, with major holders increasing deposits to exchanges amid market corrections. According to data from on-chain analytics firm CryptoQuant, large Bitcoin holders-often institutional investors or sovereign entities-have funneled funds into exchange wallets as prices dipped below $90,000 in late November 2025. This trend, observed despite a broader market selloff, underscores growing confidence in Bitcoin's long-term value proposition, even as short-term uncertainties persist.

The shift is exemplified by Texas's recent allocation of $5 million into BlackRock's iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF, marking the first of two planned purchases. The state intends to follow up with a second $5 million investment in self-custodied Bitcoin once its infrastructure is finalized. This move aligns with a broader strategy to diversify its financial reserves, as outlined in legislation approved earlier in 2025 that permits holding Bitcoin as a long-term asset. While the ETF purchase is temporary, it highlights a strategic pivot by governments toward digital assets, following similar actions by Wisconsin and Harvard University, which disclosed a $443 million IBIT stake.

Institutional demand for Bitcoin ETFs has shown mixed signals in recent weeks. On November 21, the sector recorded $238.4 million in net inflows, reversing a three-week outflow trend. BlackRock's IBIT led the rebound with $60.6 million in inflows, despite a $523 million outflow the prior day according to trading news. However, analysts caution that these flows reflect tactical rebalancing rather than a structural shift. For instance, IBIT's $66 million outflows over two days in late November-coupled with inflows into Fidelity's FBTC-suggest institutions are rotating capital rather than abandoning Bitcoin according to CoinDoo analysis. Bitfinex analysts attribute this behavior to profit-taking by long-term holders and leveraged positions unwinding amid macroeconomic uncertainty, including delayed Federal Reserve rate cuts according to Cointelegraph reporting.

Sovereign and institutional buying remains a stabilizing force. Abu Dhabi's Mubadala Investment Co., part of the Abu Dhabi Investment Council, tripled its IBIT holdings in Q3 2025, committing $517.6 million to the fund. This aligns with a global trend of sovereign wealth funds treating Bitcoin as a reserve diversification tool, despite regulatory and technical challenges as reported by CryptoNews. Meanwhile, Asian institutional investors have maintained consistent Bitcoin inflows, contrasting with U.S. retail outflows, further reinforcing the asset's institutional appeal as trading news indicates.

Technical indicators suggest Bitcoin may find support above $84,243, with ETF-driven liquidity narrowing spreads and buffering volatility. Analysts note that older, long-term investors now account for over 95% of ETF assets, reducing market sensitivity to short-term swings. If the Federal Reserve delivers a December rate cut, inflows could surge to early-2024 levels, potentially pushing Bitcoin toward $100,000 by early 2026 according to trading news.