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Bitcoin Updates: Institutions Wager That Bitcoin's Recent Drop Signals a Lasting Bottom During Market Downturn

Bitcoin Updates: Institutions Wager That Bitcoin's Recent Drop Signals a Lasting Bottom During Market Downturn

Bitget-RWA2025/11/22 21:16
By:Bitget-RWA

- Institutions and governments are buying Bitcoin amid its 7-month low, viewing it as a long-term floor after a 23% drop. - El Salvador added 1,090 BTC to its reserve, while $1.9B in long positions were liquidated due to macroeconomic pressures. - Emerging token GeeFi (GEE) attracts speculative investment, mirroring Bitcoin's pre-halving dynamics despite unclear use cases. - Market sentiment shows cautious optimism as Bitcoin stabilizes near $91,000, contrasting with traditional assets like Global-E Online

Bitcoin’s latest price decline has sparked notable interest from institutions, as prominent investors and government entities move to take advantage of what some experts are calling a “prime opportunity for long-term holders.” After dropping to its lowest point in seven months—dipping below $90,000 at the end of November—the cryptocurrency has since recovered by nearly 2%, with cautious optimism returning to the market. At the same time, up-and-coming tokens such as GeeFi (GEE) are also seeing early investment, as market players consider both assets to be strategic bets for the future in an unpredictable environment

.

This price movement is part of a wider market correction, with

fluctuating between $92,000 and $93,000 after a steep fall from $102,000 earlier in November. The recent downturn has fueled speculative buying, especially among institutional investors. Strategy, a leading crypto investment fund, ramped up its Bitcoin acquisitions by 16-fold last week, purchasing 8,178 at an average cost of $102,171. El Salvador, which began accumulating Bitcoin reserves in 2021, bringing its total holdings to 7,474 BTC. These actions reflect a belief that the current prices may represent a “bottom” after the asset’s 23% monthly drop—the steepest since 2022 .

Analysts attribute the recent selloff to broader economic pressures, such as uncertainty over potential U.S. Federal Reserve rate reductions, weak sentiment in equity markets, and forced liquidations of leveraged positions. More than $1.9 billion in long positions were wiped out over four days, causing the total crypto market value to fall below $2.8 trillion. Meanwhile, Bitcoin miners are keeping a close eye on the difficulty adjustment scheduled for November 26, which could help stabilize mining profitability. Current projections indicate a possible support level of $36–$38 per petahash, and smaller miners may be forced out if prices drop further

.

Bitcoin Updates: Institutions Wager That Bitcoin's Recent Drop Signals a Lasting Bottom During Market Downturn image 0

Despite recent turbulence, there are indications that the market is stabilizing. The total value of the crypto market bounced back to $3.13 trillion in early December, with Bitcoin’s price steadying around $91,000. Buyers taking advantage of the dip have remained active, especially below the $90,000 mark. BitMine CEO Tom Lee and Bitwise Asset Management have both pointed to the prevailing “extreme fear” in the market as a possible trigger for a short-term rally. The sentiment index, though still reflecting fear,

, suggesting a cautious sense of hope.

The newly introduced token GeeFi (GEE) has also caught the eye of speculative investors. Although its practical applications remain unclear, early backers are treating it similarly to how Bitcoin was viewed before previous halvings, with undervalued assets attracting aggressive buying. While GEE’s underlying value is still unproven, its launch

for high-risk, high-reward investments during a market downturn.

The volatility in the crypto market stands in contrast to traditional assets. For instance, e-commerce company Global-E Online reported a 25.5% increase in revenue for the third quarter, driven by robust growth in gross merchandise value. Nevertheless, its stock price dropped 6.24% in pre-market trading, reflecting a broader sense of caution among investors.

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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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