Bitcoin (BTC-USD) Price Analysis: Institutions Trigger $490M Sell-Off as BTC Marks 17 Years and Slips Below $110,000 Amid Liquidity Strain
Institutional Profit-Taking Drives a $490 Million Bitcoin Shakeout
After weeks of volatile trading, Bitcoin (BTC-USD) entered November on a defensive note, trading near $109,820, approximately 13% below its early-October high of $126,080. This decline, representing Bitcoin’s first red October since 2018, was exacerbated by institutional repositioning and shifting macro expectations. A coordinated sell-off of nearly $490 million in BTC holdings by major players such as BlackRock, Fidelity, and ARK 21Shares triggered the correction. Market observers noted that this was a mix of profit-taking and defensive reallocation, as fund managers aimed to rebalance portfolios ahead of the year’s end. Most withdrawals occurred during U.S. trading hours, with automated trading algorithms amplifying the downturn once prices fell through key liquidity zones around $111,000.
While this sell-off unnerved retail investors initially, on-chain data revealed that long-term holders started reducing their exposure between the $118,000–$122,000 range. This suggests many believed that Bitcoin may have temporarily peaked in its latest four-year cycle. Despite the volatility, institutional ownership remains near record highs, indicating that this move was more tactical than a reflection of diminishing confidence in Bitcoin’s long-term value.
U.S. Treasury Endorsement of Singapore’s Crypto Framework Boosts Global Confidence
Despite sell-side pressure, a significant regulatory milestone surfaced during the APEC Summit in South Korea, where U.S. Treasury Secretary Scott Bessent praised Singapore’s Prime Minister Lawrence Wong for the nation’s leadership in digital asset regulation. Singapore has emerged as a leader in the crypto landscape, issuing double the number of licenses in 2024 than in 2023, with nearly 25% of its 5.9 million citizens now owning digital assets. The U.S. endorsement signals a notable shift in Washington’s approach, pushing for cooperative regulation instead of confrontation. This shift could serve as a catalyst for the next wave of institutional adoption, lending credibility to regulatory frameworks that bolster Bitcoin’s long-term valuation.
Venezuela’s Conexus Moves to Integrate Bitcoin and Stablecoins into National Banking
In another significant development, Venezuela’s largest payment processor, Conexus, announced plans to incorporate Bitcoin (BTC) and Tether (USDT) into its interbank infrastructure. This network, processing 40% of Venezuela’s electronic transactions, will enable crypto custody and blockchain-based settlements among domestic banks. President Rodolfo Gasparri called the initiative “an inevitable step” towards modernizing financial systems in an inflation-battered economy. This move aligns Venezuela with global institutions such as JPMorgan and Morgan Stanley, which have both expanded their crypto services. For Bitcoin, this integration reinforces its role as a monetary hedge in hyperinflationary environments and signals a broader geopolitical shift towards crypto-backed payment systems in emerging markets.
BTC Turns 17: From White Paper to $2 Trillion Market Titan
October 31 marked 17 years since the publication of Satoshi Nakamoto’s white paper, “Bitcoin: A Peer-to-Peer Electronic Cash System.” From its humble beginnings as a nine-page document in 2008 to a $2 trillion market capitalization in 2025, Bitcoin has solidified its place among the top eight global assets by value. Despite the 3.7% monthly decline, Bitcoin’s long-term trajectory remains resilient. Market analysts describe the current phase as a controlled deleveraging cycle aimed at flushing out speculative leverage while reinforcing healthy accumulation zones around $104,000–$108,000. The cryptocurrency’s trading volume surged past $105 billion daily in late October, indicating robust liquidity even amid corrections. Historically, post-anniversary consolidations have often preceded renewed bullish breakouts, hinting at a potential rebound as November begins.
Technical Outlook: BTC Consolidates Between $106,000 and $119,000 Ahead of Breakout
On the 4-hour chart, Bitcoin is caught in a descending triangle, with resistance near $119,750 and support at $106,375. The 20-period EMA is limiting upside momentum, while Doji and spinning-top candles signify market indecision. The Relative Strength Index (RSI) hovers at 46, suggesting a neutral momentum with a slight upward bias. Analysts identify $111,675 as the immediate breakout trigger—closing above this could spur a rally towards $116,350 and $119,750, signaling a possible return to bullish momentum. Conversely, a sustained break below $106,300 could extend the correction to lower targets of $103,500 or even $100,250.
Liquidity Tightening and Fed Policy Shift Undermine ‘Uptober’ Momentum
October’s downturn—the first “Red Uptober” since 2018—coincided with concerns over tightening global liquidity. The Federal Reserve’s decision to reduce its quantitative tightening program initially spurred optimism, but Chair Jerome Powell’s remarks on October 29 dampened hopes for a third rate cut, driving risk assets lower. At one point, BTC dipped below $106,000, its lowest point in four months, as traders weighed Powell’s statements cautioning that further cuts aren’t guaranteed. Analysts like Juan Leon of Bitwise cite a convergence of macro shocks and fragile internal market structure as key contributors to this downturn. Data from CoinGlass confirmed that nearly $19 billion in leveraged long positions were liquidated through October, wiping out speculative excess accumulated during Bitcoin’s ascent above $125,000. Yet, Bitcoin remains up 58% year-to-date, outperforming traditional risk assets like the Nasdaq 100 and S&P 500.
Bitcoin Hyper and Layer-2 Expansion Signal Technological Evolution
Innovation persists even amidst market turbulence. Bitcoin Hyper ($HYPER), a Layer-2 protocol built on the Solana Virtual Machine (SVM), aims to combine Bitcoin’s security with Solana’s transaction speed. Currently priced at $0.013195 per token in its presale and already topping $25 million in raised capital, this initiative allows for smart contracts, DeFi applications, and NFT creation directly secured by Bitcoin’s network. This evolution marks a crucial shift for Bitcoin from being merely a store of value to becoming a programmable ecosystem capable of competing with Ethereum-based networks. As scalability and transaction throughput emerge as focal points for institutional adoption, hybrid models like Bitcoin Hyper could crucially define the next phase of blockchain integration.
Market Sentiment: From Fear to Cautious Accumulation
The Crypto Fear & Greed Index recently dropped to 32, indicating a state of mild fear following the institutional sell-off. Nonetheless, funding rates and on-chain activity hint at renewed accumulation around the $108,000–$110,000 region, particularly from corporate treasuries and ETFs. Bitcoin ETFs recorded $1.4 billion in inflows during the last week of October, even as prices fell, signifying that sophisticated investors are capitalizing on buying opportunities. Meanwhile, long-term holders now control over 70% of circulating supply, often a precursor to recovery rallies in the middle of a market cycle. Analysts maintain that the market’s base remains solid, provided Bitcoin can defend crucial support near $104,000 through early November.
Forecast and Strategic Outlook: Short-Term Volatility, Long-Term Strength
Technical and fundamental indicators suggest that Bitcoin’s current consolidation phase may resolve within the coming weeks. If BTC can break above $112,000, momentum might accelerate towards $120,000, potentially reclaiming earlier highs. A sustained move above $119,750 would signify a reestablishment of bullish dominance, targeting levels between $133,000–$140,000 by year-end. However, failure to maintain levels above $106,000 may trigger deeper corrections, although analysts regard any pullback toward $100,000 as a strategic accumulation opportunity rather than a reversal. The convergence of regulatory progress in Asia, Venezuela’s financial integrations, and persistent ETF demand form a robust basis for renewed upside as liquidity conditions improve.
Verdict: Bitcoin (BTC-USD) — Buy on Dips as Institutional Flows and Global Integration Signal Strength
Despite October’s setbacks, Bitcoin’s structural uptrend continues to hold firm. Institutional rotation, global regulatory alignment, and rising adoption are solidifying its long-term narrative. With the BTC-USD pair stabilizing near $109,000, it appears to be nearing the final stages of correction before its next upward movement. As inflation stabilizes, uncertainties surrounding Fed rates lessen, and global adoption accelerates—from Singapore’s regulatory leadership to Venezuela’s banking integration—Bitcoin’s macro positioning remains formidable.
Rating: Buy on Dips (Target: $133,000–$140,000, Stop below $103,500) — as the world’s first digital asset transitions into its 18th year, Bitcoin continues to illustrate that every shakeout is merely an invitation for stronger hands to step in.
