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Bitcoin Updates Today: Is Bitcoin’s Drop Indicating a Bear Market or Revealing Foundational Strength?

Bitcoin Updates Today: Is Bitcoin’s Drop Indicating a Bear Market or Revealing Foundational Strength?

Bitget-RWA2025/11/17 21:22
By:Bitget-RWA

- Bitcoin's drop below $95,000 triggered a 2.8% S&P 500 decline, raising fears of synchronized market downturns. - American Bitcoin (ABTC) reported $3.47M profit but shares fell 13% as BTC price erosion offset mining gains. - 43-day U.S. government shutdown created information vacuum, while $869M Bitcoin ETF outflows highlighted investor panic. - Fed rate cut odds dropped to 45% amid inflation concerns, with analysts warning of cascading price drops below $90,000. - Institutional ETF adoption and $835M Mic

The recent drop in Bitcoin’s value has heightened worries about its potential impact on U.S. stocks, as some experts caution that both markets could decline in tandem. Last week, the cryptocurrency slipped under $95,000—the lowest level since March—after a combination of fading optimism for Federal Reserve rate cuts, tightening liquidity, and profit-taking by long-term investors led to a steep selloff

. The S&P 500 has followed a similar downward path, , fueling concerns about a possible broader market pullback.

This downturn has taken a toll on

mining companies and publicly listed crypto businesses. (ABTC), which is 20% owned by Donald Trump Jr. and Eric Trump, —a reversal from a $576,000 loss a year earlier—but its stock dropped 13% in pre-market trading amid the wider crypto decline. The company’s Bitcoin reserves increased to 4,004, but the falling price wiped out gains from its mining activities.

Market confidence deteriorated further as the release of U.S. government data was halted during a 43-day shutdown,

that deepened uncertainty. ETF activity reflected the chaos: on November 13, with BlackRock’s IBIT and Fidelity’s FBTC leading the outflows. Nevertheless, total inflows since January 2024 remain strong at $59.34 billion, indicating ongoing institutional interest.

Analysts attributed the crypto market’s slide to wider economic jitters.

, now stands at just a 45% chance according to CME Group’s FedWatch, as policymakers adopt a more cautious stance due to inflation. “Bitcoin’s movements often foreshadow trends in U.S. equities,” said Bret Kenwell of eToro. , he warned.

Bitcoin Updates Today: Is Bitcoin’s Drop Indicating a Bear Market or Revealing Foundational Strength? image 0
Long-term investors (LTHs) have worsened the selloff, within a single day. At the same time, have driven Bitcoin’s Fear & Greed Index down to an “extreme fear” level of 10. “The immediate causes are tight funding and shifting expectations for interest rates, not a fundamental collapse in crypto,” said Edward Carroll of MHC Digital .

Still, some analysts believe a bottom may be forming. Gautam Chhugani from Bernstein pointed out that institutional buying through ETFs and the pro-crypto stance of the Trump administration offer structural support.

and the launch of and multi-asset ETFs also suggest greater diversification in crypto investment.

Technical signals indicate a pivotal moment.

, and a drop below the 50-week moving average of $103,000 could point to further weakness. For now, Kenwell says the market is in a “consolidation phase,” with future direction dependent on liquidity support and clearer Fed policy.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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