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Bitcoin Updates Today: Bitcoin's Sharp Drop Ignites Debate—Is This a Bear Market or a Fundamental Change?

Bitcoin Updates Today: Bitcoin's Sharp Drop Ignites Debate—Is This a Bear Market or a Fundamental Change?

Bitget-RWA2025/11/20 21:28
By:Bitget-RWA

- Bitcoin fell below $90,000, sparking debates over a prolonged bear market or rebound potential amid critical support levels. - ETF outflows ($492M in Bitcoin ETFs) and a $19B October deleveraging event highlight waning investor confidence and systemic selling pressure. - Technical indicators (RSI at 28, Fear & Greed Index at 15) and backwardation in futures signal extreme fear but potential oversold conditions. - Analysts split between structural maturity (Frontier Investments) and long-term bearish tren

Bitcoin’s recent dip below $90,000 has ignited discussions about whether the cryptocurrency is headed for an extended downturn or preparing for a swift recovery. After wiping out all of its 2025 gains with a 30% decline from its October high, Bitcoin is now hovering near key support zones. Market participants are divided on whether this signals the conclusion of a cycle or presents a strategic buying window

.

The recent decline has been driven by several factors, including ongoing outflows from U.S.

ETFs and widespread selling by both retail and institutional investors. indicate that Bitcoin ETFs saw $492 million in outflows last week, with BlackRock’s iBIT ETF and Fidelity’s leading the withdrawals. Likewise, ETFs experienced $178 million in redemptions, with the last inflows recorded on November 6 . These patterns highlight declining investor sentiment, that resulted in over $19 billion in crypto assets being liquidated in a single day.

Bitcoin Updates Today: Bitcoin's Sharp Drop Ignites Debate—Is This a Bear Market or a Fundamental Change? image 0
Derivatives markets further reflect the prevailing bearish outlook. , meaning contract prices are now below spot prices—a rare situation that often signals heightened fear. The three-month annualized rolling basis has dropped to 4%, the lowest since November 2022, when Bitcoin fell to $15,000 during the FTX crisis. in 2023 came before significant reversals, implying that the current setup could either signal the end of the downturn or one last shakeout of weaker holders.

Technical signals also indicate that the market is oversold.

has dropped to 28, and the Crypto Fear & Greed Index has fallen to 15, its lowest since February 2025. At the same time, Bitcoin is trading close to its estimated production cost of $94,000, a level where miner shutdowns could ease selling pressure and potentially spark a rebound . Some market watchers believe the $89,000–$90,000 support range, and two intraday recoveries this week, could serve as a base for accumulation.

Not everyone is predicting a new “crypto winter.”

, contends that Bitcoin’s current pullback represents a structural evolution rather than a typical bear cycle. “This isn’t the usual capitulation we’ve witnessed in the past,” he stated. “Bitcoin is maturing into an established asset class, with institutional involvement and liquidity that previous cycles lacked.” This perspective is consistent with that Bitcoin’s value lies in its function as a non-sovereign store of wealth, a utility that strengthens as adoption increases.

Nevertheless, some remain wary.

that the market has entered a long-term bearish phase, with Bitcoin’s dominance potentially dropping to 58.5% and major total market-cap supports at $2.92 trillion and $2.50 trillion. He observes that while short-term rebounds may occur, the broader trend is still downward.

Broader economic factors are also contributing to the uncertainty.

has increased liquidity pressures, with the likelihood of a December rate cut now at 47%—down from 94% a month earlier—leaving investors uncertain. Meanwhile, to 0.87, highlighting its behavior as a high-beta technology asset during a synchronized selloff in risk markets.

Looking forward, events such as the December 15 introduction of Cboe’s continuous Bitcoin futures and progress in quantum-resistant cryptography could shape Bitcoin’s path. In the near term, Bitcoin needs to reclaim the $93,500 mark to revive bullish sentiment, while a drop below $89,000

.

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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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