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Bitcoin Updates Today: Bitcoin's Volatility: Surrender or Endurance from Institutions?

Bitcoin Updates Today: Bitcoin's Volatility: Surrender or Endurance from Institutions?

Bitget-RWA2025/11/25 23:28
By:Bitget-RWA

- Bitcoin's recent price drop and negative funding rates suggest market capitulation, with open interest collapsing 32% since late October 2025. - Institutional holdings like KindlyMD's $681M BTC stash and Harvard's ETF investments highlight growing long-term confidence in Bitcoin's stability. - Q3 2025 crypto VC surged 290% to $4.65B, while experts diverge: Standard Chartered targets $200K BTC by year-end, Kraken predicts $80K–$100K consolidation. - Macro risks including Japan's reserve rules and AI-drive

Bitcoin’s recent price swings have sparked discussions about whether the market is experiencing a typical capitulation period, as funding rates dip into negative territory and open interest plummets. VanEck’s report points out that open interest in

perpetual contracts has fallen by 20% since late October 2025, , indicating a significant pullback in speculative trading. This mirrors previous bearish cycles, where sharp declines in funding rates often come before oversold markets. Still, the firm warns that large-scale basis trades—such as Ethena’s $14 billion TVL in October, now reduced to $8.3 billion—can skew traditional signals by artificially lowering funding rates .

Bitcoin Updates Today: Bitcoin's Volatility: Surrender or Endurance from Institutions? image 0

At the same time, institutional holdings of Bitcoin continue to provide stability. KindlyMD, which is listed on NASDAQ, revealed it held 5,398

as of November 12, 2025, with an average acquisition price of $118,204 per coin, amounting to $681 million in total. The company’s methodical strategy— —demonstrates increasing institutional trust in Bitcoin as a treasury reserve asset for the long term.

Bitcoin’s price has shown considerable volatility, hovering near $87,500 in late November. Hopes for a possible Federal Reserve rate cut in December have fueled two straight days of gains, lifting BTC above $88,000. However, the upward trend faces challenges. Analysts at Swissblock

—suggesting selling pressure is easing—but warn that another round of capitulation could still occur.

Venture capital activity in the crypto sector sends mixed messages.

, marking a 290% increase from the previous quarter, as investors focused on stablecoins, artificial intelligence, and blockchain infrastructure. Mike Novogratz of Galaxy Digital by revealing ongoing discussions with prediction markets Polymarket and Kalshi to boost liquidity.

Expert opinions remain divided.

, depend on continued ETF inflows and a more accommodative Fed. On the other hand, Kraken’s neutral analysts believe Bitcoin may trade sideways between $80,000 and $100,000, reflecting a cautious outlook amid ETF outflows . Meanwhile, Max Keiser interprets the recent downturn as the conclusion of a distribution phase, as accumulation resumes.

Broader risks remain significant. Japan’s soon-to-be-implemented crypto exchange reserve requirements, which mandate firms to maintain reserves for customer losses, are designed to safeguard retail investors but may also tighten liquidity

. At the same time, concerns about a tech bubble fueled by AI and ongoing geopolitical tensions—including trade rhetoric reminiscent of the Trump era—continue to impact riskier assets .

Nonetheless, institutional participation remains a positive factor. Harvard University’s $443 million investment in Bitcoin ETFs and the U.S. Strategic Bitcoin Reserve’s 198,000 BTC holdings reflect strong long-term commitment

. As the market navigates this pivotal moment, the interaction between macroeconomic trends, ETF movements, and institutional strategies is likely to shape Bitcoin’s future direction.

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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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