Bitcoin News Today: Public Entities and Institutions Buy Bitcoin Dips, DeFi Holds Firm

Bitcoin's November selloff, which saw prices dip below $90,000, served as an unintentional stress test for the cryptocurrency market. While traditional investors scrambled to reassess risk, the decentralized finance (DeFi) sector quietly demonstrated resilience. Institutions and public entities, however, appeared to treat the pullback as an opportunity, accumulating Bitcoin at a steady pace amid shifting macroeconomic expectations.

The selloff coincided with a dramatic shift in Federal Reserve rate projections, with the probability of a December rate cut surging to 80% from 30% in just days. Bitcoin stabilized near $87,000, finding support after retracing from earlier highs. This technical stabilization, coupled with rapidly evolving policy expectations, prompted analysts to reevaluate positioning across the digital asset sector. Meanwhile, projects like Bitcoin Munari, which maintains a fixed 21 million supply model, continued their structured rollout, emphasizing rule-based distribution unaffected by macro volatility.

Institutional players also adapted. MicroStrategy (MSTR) moved $5 billion in Bitcoin to Fidelity Custody as part of a broader diversification strategy. The company also established a $1.44 billion USD reserve to support dividend payments, signaling confidence in its ability to navigate short-term volatility. These moves contrasted with broader market jitters, as crypto-related stocks and digital asset treasuries fell sharply during the selloff.

DeFi's response to the stress test was more subtle but equally telling. Altura, an onchain yield platform, raised $4 million to expand its transparent, institutional-grade yield strategies. By focusing on market-neutral techniques - such as capturing price discrepancies and rotating collateral - Altura aims to generate steady returns without relying on token emissions or high-risk leverage. The platform's live onchain NAV system allows users to track performance in real time, a feature analysts argue is critical for building trust in volatile markets.

Public entities also played a role in stabilizing the market. El Salvador added $100 million in Bitcoin to its holdings, while Texas deployed $5 million into a Bitcoin ETF. In Europe, the Czech National Bank executed a $1 million digital-asset pilot, and Luxembourg's sovereign wealth fund confirmed a 1% Bitcoin allocation. These actions, though incremental, underscored a growing institutional appetite for Bitcoin as a store of value.

Deleveraging in the DeFi sector further highlighted the selloff's impact. Ethena's USDe saw its total value locked (TVL) drop nearly 50% as perpetual funding rates compressed and leveraged strategies unraveled. Yet, projects with robust risk management frameworks, like Altura, maintained steady inflows, suggesting that transparency and disciplined strategies can weather market turbulence.

Regulatory uncertainty, meanwhile, remained a wildcard. A U.S. House report criticized the Biden administration's approach to crypto oversight, arguing it created a "regulatory regime" that stifled innovation. However, Trump-era regulators have since rescinded several restrictive measures, potentially easing the path for broader institutional adoption.

Looking ahead, the November selloff appears to have reinforced a key theme: DeFi's ability to operate without centralized interventions. As public entities and institutional players continue to accumulate Bitcoin during dips, the sector's resilience may prove a bellwether for broader adoption. For now, the market's focus remains on the Federal Reserve's next move and whether DeFi can maintain its quiet momentum amid ongoing volatility.