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Bitcoin News Update: Bitcoin’s Microsoft-Style Approach Draws Investors Amid Price Decline

Bitcoin News Update: Bitcoin’s Microsoft-Style Approach Draws Investors Amid Price Decline

Bitget-RWA2025/11/20 18:34
By:Bitget-RWA

- Bitcoin's $86,000 drop near "max pain" level sparks debate over short-term risks and long-term buying opportunities amid sustained bearish pressure. - Bitwise's Matt Hougan highlights Bitcoin's decentralized wealth-storage utility, comparing its demand-driven model to Microsoft's subscription services. - Institutional adoption grows with Bitwise's XRP ETF launch, while technical indicators show Bitcoin below key support at $83,111 and Ethereum near oversold RSI levels. - Fed's hawkish stance and delayed

The recent slide in Bitcoin's value to $86,000 has sparked renewed debate about its approach to the so-called "max pain" threshold—a stage where short-term investor losses are believed to peak—while also drawing attention to what some market observers see as an appealing "discount" opportunity for those with a long-term outlook. This downturn comes after a month marked by persistent bearish sentiment, with

hovering near crucial support points and major institutional investors assessing its shifting significance in the global financial system.

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, highlighted that Bitcoin's true worth is rooted in its function as a decentralized digital store of value, rather than its price swings. "Bitcoin's price has surged 28,000% over the past decade because more individuals are seeking to safeguard their wealth digitally without relying on intermediaries," he explained in a message to clients

. Hougan compared Bitcoin’s demand-driven nature to the subscription model of Microsoft’s software, arguing that its value is shaped by the number of users who desire its censorship-resistant features. This approach differs from standard valuation methods, as Bitcoin does not have a central issuer or consistent revenue streams.

Institutional interest in digital assets continues to grow, as demonstrated by Bitwise's recent introduction of the Bitwise

ETF on the New York Stock Exchange. This fund, which tracks XRP—the native currency of the XRP Ledger— for digital assets that enable global transactions and asset tokenization. Bitwise CEO Hunter Horsley described the ETF as a new entry point for investors to gain exposure to an asset "transforming the movement of money worldwide," referencing applications from U.S. Treasuries to private lending.

From a technical perspective, the outlook remains negative in the short term.

and is testing a key support at $83,111, a level last reached in April. and XRP are also under pressure, with Ethereum below its 200-day EMA at $3,554 and XRP just above $2.00. Both cryptocurrencies show extended bearish signals in their MACD and RSI readings, with Ethereum’s RSI nearing oversold levels. Experts caution that dropping below these supports could prompt further declines, although a recovery toward the EMAs could occur if buying interest returns.

Bitcoin News Update: Bitcoin’s Microsoft-Style Approach Draws Investors Amid Price Decline image 0

Uncertainty around the Federal Reserve’s policy direction has added to the turbulence in the crypto sector.

and a mixed jobs report for September have dampened hopes for interest rate cuts in December. Cleveland Fed President Beth Hammack reiterated a cautious approach, to prevent a resurgence in inflation. "Monetary policy should remain somewhat restrictive to steer inflation back to 2%," she said, stressing the Fed’s focus on price stability over labor market support. This backdrop has kept Bitcoin trading within a tight range, while stablecoin reserves have reached a record $72.2 billion—potentially indicating sidelined capital that could drive a rally if macroeconomic conditions improve.

Despite ongoing short-term challenges, long-term advocates remain optimistic.

is set to increase as debt levels rise and digitization accelerates, with demand for its services likely to surpass supply. At the same time, institutional infrastructure—such as Anchorage’s collaboration with Mezo to provide BTC-backed loans— , further integrating Bitcoin into mainstream finance.

As these factors play out, the next few weeks will reveal whether Bitcoin can maintain its current price range or face deeper declines. For now, the crypto market is shaped by the interplay of economic uncertainty, technical weaknesses, and ongoing institutional developments.

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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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