Bitcoin News Update: Market Divided: Is Bitcoin's Decline a Temporary Adjustment or the Start of a Downtrend?

Bitget-RWA2025/11/07 05:30

By:Bitget-RWA

- Bitcoin fell below $100,000 on Nov. 4, 2025, triggering $1.3B in liquidations and sparking fears of a broader market correction. - Institutional investors rotated capital amid ETF outflows and macroeconomic uncertainty, with spot Bitcoin ETFs losing $187M in a single day. - Analysts remain divided on whether the decline signals a temporary pullback or a deeper bearish phase, as technical indicators show bearish momentum. - Geopolitical risks and divergent corporate strategies (e.g., Sequans redeeming deb

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On November 4, 2025, Bitcoin dropped below the $100,000 mark for the first time in three months, sparking over $1.3 billion in crypto market liquidations, as reported by a

Yahoo Finance report

. The sharp decline, with

Bitcoin

falling 6% in a single session, has heightened worries about a wider market pullback. This comes as large investors shift their funds in response to economic uncertainty and ongoing ETF withdrawals, according to a

Crypto Economy article

. The recent drop has reignited discussions among market experts about whether this is a short-term correction or the beginning of a more significant downturn.

This movement follows a 20% slide from Bitcoin’s October high near $124,500, with the cryptocurrency now hovering around $106,600—a level many analysts consider crucial, based on data from

TradingView

. Technical signals remain negative: the MACD indicator is still well below zero, and Bitcoin is testing the lower edge of the Keltner Channel at $103,321.

Bitcoin News Update: Market Divided: Is Bitcoin's Decline a Temporary Adjustment or the Start of a Downtrend? image 0

“The expanding histogram points to continued downward pressure before any stabilization,” one strategist commented. At the same time, spot Bitcoin ETFs have seen outflows for four days straight, with $187 million leaving on November 3 alone. BlackRock’s IBIT fund saw the largest withdrawal, losing $291 million on October 30 amid a scandal involving its private credit division.

Institutional moves have added to the selling. Sequans Communications paid off half of its convertible bonds using 970 BTC (worth $94.5 million), while

CleanSpark

and

American Bitcoin

Corp increased their Bitcoin holdings, reflecting different approaches among corporate investors. Galaxy Digital has lowered its 2025 price forecast from $185,000 to $120,000, citing slower institutional buying and more coins being sold by long-term holders, according to

Coinotag

Bitwise

, on the other hand, remains optimistic, predicting a possible bounce to $150,000 if Bitcoin can stay above $100,000.

Broader market sentiment is also being dampened by geopolitical tensions. The upcoming Supreme Court review of tariffs from the Trump administration has unsettled investors, with some Wall Street leaders warning of a potential 10% drop in equities.

Cathie Wood

Ark

Invest has also revised her Bitcoin target down to $1.2 million by 2030, pointing to the rapid growth of stablecoins in developing economies. “Stablecoins are now taking on roles that were once expected of Bitcoin,” she explained.

Despite the recent volatility, some investors see this as a chance to buy. A major investment firm acquired 397 BTC for $45.6 million at a price of $114,771, bringing its total holdings to 641,205 BTC (valued at $69 billion). “This is a normal ‘step back’ in the evolution of ETFs,” said ETF analyst Eric Balchunas, who described the pullback as “healthy” after SPY’s 83% rally since late 2022, according to

BeInCrypto

Bitcoin’s next direction will depend on whether buyers can maintain the $100,000 level—a psychological milestone that has historically attracted institutional interest during market dips. For now, the market remains unsettled, with experts divided on whether this is a routine correction or the start of a longer-lasting decline.

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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1. Technology stocks fell sharply as investor interest shifted toward energy and selected defensive assets. From October 10 to 16, the Nasdaq 100 declined 5.49% and the S&P 500 fell 1.95%, while the Dow gained 0.67% and WTI crude rose 10.41%. BTC, ETH, and SOL declined 1.27%, 2.65%, and 4.44%, respectively. This week's technology earnings will be an important test of whether revenue growth, margins, and cash flow can justify current valuations. Better-than-expected results could help stabilize markets in the near term. 2. Crypto continues to see pockets of strong activity, but a broad-based altcoin season has yet to materialize. CoinMarketCap's (CMC) Altcoin Season Index stood at 54 as of the October 18 UTC daily observation, below the altcoin-season threshold of 75, while BTC dominance rose to 60.08%. Our proxy leverage ratio fluctuated between 4.00 and 4.07 during the week, showing no sustained increase and suggesting limited appetite for additional leverage. Meanwhile, as major exchanges expand access to traditional financial assets, the recent sell-off in AI-related equities could attract short-term speculative capital away from crypto. Such capital rotation could make it more difficult for a new altcoin season to take hold. 3. Papertrade's loss-to-mine model has generated significant interest across the crypto community. The protocol combines high-leverage derivatives trading with zero slippage and a mechanism that rewards trading losses with PAPER tokens. Across the eight complete UTC days from October 10 to 17, cumulative reported revenue reached approximately $56.08 million, including $51.90 million distributed to token holders. With growing participation from key opinion leaders (KOLs), Papertrade has reportedly ranked among the top three platforms by profitability in the broader market recently. Assets to watch: BTC, ETH, SOL, ARB, OP, SKHYNIX, SKHY, META, TSLA, LRCX, and SPCX. Key research priorities this week: Cash flow performance in technology earnings; the relative discount and holding costs of the two SK Hynix contracts; and U.S. initial jobless claims and PMI data. Weekly market data cover the period through October 16, while research information was verified through October 18. Observation periods are specified separately for each chart.

Bitget•2026/10/19 06:51