Bitcoin’s ( BTC ) rally stalled after reaching an intraday high of $93,080. The flagship cryptocurrency has struggled to regain momentum and fell to an eight-month low of $99,483 on Wednesday. Strong earnings by Nvidia have calmed markets and allayed fears of an AI bubble for now. Spot Bitcoin ETFs have also broken a five-day outflow streak and recorded $75 million in fresh inflows. Spot Bitcoin ETFs Snap Outflow Streak Spot Bitcoin ETFs reversed course to snap a five-day outflow streak, recording fresh inflows of $75 million. The inflows came as a relief for markets reeling from a brutal week as investors withdrew over $2 billion from the funds. BlackRock’s IBIT led the inflows with $60.6 million. However, Fidelity’s FBTC recorded outflows of $21.4 million, while smaller funds, including ARKB, BTCO, and BRRR, registered no net change. Other issuers, including HODL, saw outflows of around $17 million, indicating that investors remain selective as buyer interest returns. The ETF rebound comes after one of the sharpest declines in the history of Bitcoin ETFs. Spot Bitcoin ETFs shed around $2.1 billion between November 14 and 18. The ETFs reported outflows of between $492 million and $869 million on November 14, depending on the tracker, with IBIT leading the outflows. Abu Dhabi Investment Council Increased Bitcoin (BTC) Exposure Al Warda Investments, an investment tool managed by the Abu Dhabi Investment Council, increased its exposure to Bitcoin during the third quarter by increasing its BlackRock position by 230% to nearly $517 million in shares. The Abu Dhabi Investment Council is a subsidiary of Mubadala Investment Company, one of the leading sovereign wealth funds in the UAE. A spokesperson from the Abu Dhabi Investment Council stated, “We see Bitcoin as a means of retention similar to gold, and as the world moves towards a more digital future, we think Bitcoin will play an increasingly important role next to gold. Both assets contribute to diversifying our portfolio, and we expect them to keep them part of our short and long-term strategy.” AI Bubble, US Shutdown Not Responsible For Bitcoin (BTC) Crash Analysts believe BTC’s downturn has little to do with the US government shutdown or talk of a so-called AI bubble. Many have speculated that BTC , which fell to an eight-month low, was reeling from macroeconomic uncertainty triggered by the US government shutdown, which ended last week. Others suggested that market concerns about an AI bubble and its impact on crypto had hampered investor sentiment. Victoria Scholar, head of investment for Interactive Investor, stated, “Fears of an AI bubble and concerns about the market’s heavy dependence on a handful of tech giants have caused investors to dial back their exposure to speculative assets such as Bitcoin.” Bitcoin analyst PlanB also dismissed suggestions that concerns around AI were impacting BTC . “NVIDIA had robust earnings. We can remove the AI Bubble thesis from the list of reasons Bitcoin is down. The list is getting smaller and smaller. Only the 4-year cycle astrology narrative and delayed global liquidity remain. Liquidity is coming. And the 4-year narrative has a high probability of breaking.” Bitcoin (BTC) Price Analysis Bitcoin spot trading has recorded a noticeable decline, while daily trading volume has also dipped, falling 2.3% to $83.8 billion. Metrics indicate traders have taken a step back to assess market conditions and wait for clarity. However, futures volume is up 15% to 123.2 billion, while open interest (OI) registered a 3.9% increase to $67 billion. Rising open interest during market downturns indicates traders are not betting on a quick recovery. According to GlassNode, BTC is trading below the short-term holder cost basis and the -1 standard deviation band. This puts recent buyers at a disadvantage and makes the $95,000-$97,000 levels a significant resistance zone. Meanwhile, Strategy executive chairman Michael Saylor pushed back against suggestions that Wall Street’s interest is detrimental to Bitcoin. Saylor argued that BTC’s wild price swings have narrowed as institutional adoption increased. “We are getting a lot less volatility. Bitcoin is stronger than ever.” BTC ended the previous weekend in positive territory, rising over 2% and settling at $104,694. The price continued pushing higher on Monday, rising 1.23% to cross $105,000 and settle at $105,979. BTC reached an intraday high of $107,482 on Tuesday. However, it lost momentum as bear market conditions set in. As a result, it fell nearly 3% and settled at $103,009. Sellers retained control on Wednesday as the price fell 1.33% to $101,639. BTC faced substantial selling pressure and volatility on Thursday. As a result, it slipped below the crucial $100,000 mark, falling to a low of $97,870 before settling at $99,614. Selling pressure intensified on Friday as the price plunged over 5%, falling to a low of $93,951 before settling at $94,503. Source: TradingView Despite the overwhelming selling pressure, BTC recovered on Saturday, rising 1.10% to reclaim $95,000 and settling at $95,544. Selling pressure returned on Sunday as BTC fell to a low of $92,943 before settling at $94,183, ultimately dropping 1.42%. Bearish sentiment persisted on Monday as the price fell by over 2% and settled at $92,100. Selling pressure intensified on Tuesday as BTC slipped below $90,000, falling to an intraday low of 89,183. However, it rebounded from this level to reclaim $90,000 and settle at $92,914, ultimately rising nearly 1%. BTC slipped below $90,000 again on Wednesday, falling to a low of $88,483 before settling at $91,461. The flagship cryptocurrency is marginally up during the ongoing session, trading around $91,809. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
