Bitcoin News Today: Bitcoin Plummets: Is This the Start of a Bear Market or Preparation for a 2026 Recovery?

Bitcoin’s value remains stuck near its lowest point in half a year as investor confidence plunges into “extreme fear,” with

. This index, which compiles data from volatility, social media buzz, and market polls, has , indicating the market is teetering on the edge of panic selling. (BTC) , marking its lowest level since May 2025, after . Experts are split on whether this signals the start of a long-lasting bear market or .

The recent selloff has been worsened by significant withdrawals from U.S. spot Bitcoin ETFs, which

—the second-highest daily withdrawal ever recorded. led the pack with $318.2 million pulled out, while both Fidelity’s FBTC and BlackRock’s IBIT also experienced notable redemptions . These withdrawals point to declining institutional trust, with some analysts . The Fed’s recent hawkish approach has tightened liquidity for risk assets, and .

: Over 815,000 BTC were sold by long-term investors in early November, and , indicating more sellers are entering the market. —a key technical support—has fueled further bearishness. “This liquidity crunch is causing cascading liquidations as buy orders thin out,” said Vincent Liu of Kronos Research, in the $92,000 to $95,000 range.

Despite the negative outlook, some market watchers believe a rebound could be on the horizon.

as Bitcoin consolidates between $100,000 and $106,000, a formation that has often preceded upward moves in the past. Ki Young Ju from CryptoQuant as long as Bitcoin stays above $94,000, which is the average entry price for recent buyers. Meanwhile, Santiment when is at its lowest, suggesting that today’s “overwhelmingly negative” mood could set the stage for a rally.

The outlook remains uncertain. While ETF outflows and broader economic worries continue to drag prices down, institutional interest could return if the Fed hints at rate cuts or liquidity conditions improve. For now, the market is on alert for any catalyst that could either spark a recovery or confirm a deeper downturn.