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Bitcoin Updates: Institutions Remain Wary Amid Regulatory Turbulence—Will Bitcoin Reach $80K?

Bitcoin Updates: Institutions Remain Wary Amid Regulatory Turbulence—Will Bitcoin Reach $80K?

Bitget-RWA2025/11/19 18:04
By:Bitget-RWA

- Bitcoin fell below $90,000 in late 2025 amid regulatory scrutiny, macroeconomic uncertainty, and institutional outflows, losing 26% from its October peak. - Record $523M ETF outflows and $19B leveraged liquidations highlight market fragility, while Harvard's $443M IBIT allocation signals cautious institutional interest. - Fed ethics scandals and delayed rate cuts (now 46% chance in December) exacerbate uncertainty, alongside Japan/Brazil's regulatory headwinds raising compliance costs. - Analysts debate

Bitcoin has continued to experience downward momentum, dropping below $90,000 in late November 2025 as a result of increased regulatory attention, global economic instability, and changing attitudes among major investors. After reaching a high of $126,000 in October, the digital asset has shed more than 26% of its value within a month, sparking debate over whether this marks a short-term pullback or the onset of a more prolonged bearish trend.

the $80,000 support area, with some analysts warning that continued selling could push prices down to test this level.

The recent decline has been intensified by

of leveraged trades in October, according to blockchain data, while institutional investors have been pulling funds from ETFs at an increasing rate. , the largest Bitcoin ETF, recorded an unprecedented $523 million in outflows in November, reflecting a broader shift toward risk aversion as investors engage in year-end tax strategies and profit-taking. At the same time, made an unusual move into Bitcoin, allocating $443 million to BlackRock's , indicating that some institutional players remain cautiously interested despite the market slump.

Regulatory shifts have added further complexity to the situation.

involving former Governor Adriana Kugler, who stepped down in August after repeated breaches of trading policies, has raised doubts about the central bank's credibility. more than a dozen stock transactions during restricted periods, including purchases of Apple and Southwest Airlines shares, leading lawmakers such as Senator Tim Scott to demand tighter oversight. This reputational setback comes as have been postponed, with the likelihood of a December cut dropping to 46%, down from near certainty in October.

Bitcoin Updates: Institutions Remain Wary Amid Regulatory Turbulence—Will Bitcoin Reach $80K? image 0
Experts remain split on Bitcoin's short-term direction. Gautam Chhugani of Bernstein believes the current drop is more of a "brief consolidation" than a major downturn, citing increased institutional involvement and the pro-crypto approach of the Trump administration. On the other hand, that tightening liquidity and fragile macroeconomic conditions could create a "self-fulfilling prophecy" of further declines. a 6.4:1 ratio of short to long positions on Binance, and exchange reserves have grown by $1.43 billion, suggesting widespread panic selling.

Regulatory challenges have also emerged in Japan and Brazil, with Tokyo now classifying 105 cryptocurrencies as financial instruments and Brasília considering a tax on stablecoins. These regulatory changes are likely to increase compliance costs for trading platforms and could suppress trading activity in important markets. Meanwhile,

is under threat, and a drop below the $89,600–$79,500 support range could trigger a further slide toward $74,000, a level last seen in February.

The next few weeks will be shaped by

and U.S. employment figures, both of which could influence expectations for interest rate cuts. For now, the $80,000 support level and greater regulatory transparency will be key in determining whether Bitcoin is forming a cyclical bottom or facing a more significant decline.

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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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