"According to Deutsche Bank, the sell-off isn't driven by a single catalyst but a combination of market psychology, macro pressure, and shifting investor behavior. The bank points first to a broader risk-off mood. Bitcoin is behaving less like an independent monetary asset and more like an extended-duration tech stock - moving closely with the Nasdaq-100 as investors de-risk across the board."
"The second driver is the Federal Reserve. Jerome Powell's recent comments threw cold water on hopes for a guaranteed December rate cut, though New York Fed President John Williams later softened the message. Higher-for-longer rates sap enthusiasm for speculative assets, and the Bitcoin price reaction is no exception. Regulatory limbo is another weight. Progress on the Digital Asset Market Clarity Act has slowed in the Senate, muting institutional confidence just as new players were beginning to enter the market."
"Meanwhile, institutional outflows are accelerating. Several large funds have been trimming positions through November, adding mechanical sell pressure. And long-term holders - some sitting on massive gains after multiple halving cycles - are taking profits into year-end, further amplifying downside momentum. Bitcoin price traded near $86,000 Monday morning after a modest weekend bounce, recovering from Friday's close around $84,53. The move raises a bigger debate: is this a healthy correction or the start of something deeper?"
Bitcoin fell more than 30% from last month's highs, marking its worst week since February. The decline reflects a mix of market psychology, macroeconomic pressure, and shifting investor behavior. A broad risk-off mood has pushed bitcoin to move like an extended-duration tech stock, tracking the Nasdaq-100 as investors de-risk. Federal Reserve communications and prospects for higher-for-longer rates dampen demand for speculative assets. Regulatory uncertainty, including slowed progress on the Digital Asset Market Clarity Act, has muted institutional confidence. Accelerating institutional outflows and profit-taking by long-term holders have added mechanical sell pressure, amplifying downside momentum ahead of year-end.
Read at Bitcoin Magazine
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