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Bitcoin Updates Today: Is the Crypto 'Extreme Fear' Index Signaling a Prime Buying Moment or Hinting at a Larger Downturn?

Bitcoin Updates Today: Is the Crypto 'Extreme Fear' Index Signaling a Prime Buying Moment or Hinting at a Larger Downturn?

Bitget-RWA2025/11/18 22:30
By:Bitget-RWA

- Bitcoin falls below $90,000 for first time in seven months as crypto market loses $600B, driven by profit-taking and institutional outflows. - U.S. Senate classifies Bitcoin/Ethereum as "digital commodities," shifting regulatory authority to CFTC amid ETF outflows and hybrid fund approvals. - sFOX-Nomura joint liquidity offering aims to stabilize markets, but leveraged positions and automated liquidations worsen downward spiral. - Analysts debate long-term resilience: while institutional buying persists,

The cryptocurrency market has been hit hard by a rapid downturn, with

dropping below $90,000 for the first time in seven months and of 10—the lowest mark since late February. The overall market has shed close to $600 billion in capitalization, and significant withdrawals from institutional investors. After reaching a high above $126,000 in October, Bitcoin is now trading at its lowest since early March, while over the past week.

Experts cite several contributing factors.

that the recent decline is the result of "long-term holders cashing out, institutional exits, macroeconomic instability, and the liquidation of leveraged long positions." a spike in activity among short-term holders, a trend that often emerges near market lows. At the same time, by 27% since their October high, now standing at $191 billion, with $3.2 billion in net outflows over the last three weeks.

Bitcoin Updates Today: Is the Crypto 'Extreme Fear' Index Signaling a Prime Buying Moment or Hinting at a Larger Downturn? image 0
the market’s volatility. A draft bill from the U.S. Senate Agriculture Committee categorizes Bitcoin and as "digital commodities," giving the CFTC oversight and marking a departure from the SEC’s usual regulatory role. While this aims to clarify rules for financial institutions, it coincides with outflows from spot Bitcoin ETFs. the second company to obtain SEC approval for an ETF-mutual fund hybrid, signaling growing institutional interest even as the market trends downward.

Major institutions are also influencing the market’s direction.

a collaborative liquidity solution to improve institutional access to crypto, merging sFOX’s consolidated order books with Laser Digital’s expertise in market making. These alliances highlight ongoing efforts to bring stability during turbulent times. However, in leveraged trades. Automated liquidations have sped up the price drops, creating a feedback loop of panic selling and profit-taking.

The recent slump has ignited discussions about the market’s long-term strength. Some see the decline as a chance to buy, while others caution about underlying structural issues.

that "institutional confidence is still robust," referencing recent large-scale Bitcoin acquisitions. Nevertheless, with ongoing geopolitical conflicts, inflation concerns, and uncertainty around Federal Reserve policy, the recovery path is far from clear.

As the market faces its steepest drop since early 2025, the combined effects of regulatory changes, institutional moves, and global economic factors are likely to shape the future of crypto. For now, investors must decide whether this is merely a temporary correction or the beginning of a more significant shift in the digital asset landscape.

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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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