Bitcoin hovers around the $87,000 mark, with 220,000 traders liquidated and $814 million wiped out! Institutional capital withdrawal triggers a "confirmed bear market" crisis.

220,000 Traders Disappear Overnight, Leverage Liquidation Underway

Currently, Bitcoin’s price hovers around $87,670, with a 24-hour decline of -0.10%. It appears to be a mild dip, but behind the scenes, a deep crisis is brewing—recent liquidation events have caused a tragedy, with 220,000 people facing forced liquidations, and $814 million in funds vanishing overnight. These figures reflect that the cryptocurrency market is experiencing an unprecedented wave of “leverage clean-up,” also signaling that systemic risks similar to a financial crisis are brewing.

Institutional Capital Retreats, ETF Withdrawals Confirm Bear Market

According to the latest analysis by 10X Research analysts, the cryptocurrency market has officially entered a “confirmed bear market” stage. Three major negative signals are fermenting simultaneously:

ETF inflows have dried up, and large institutions and funds that once supported the market are continuously withdrawing, causing buying support to collapse gradually. James Butterfill, Head of Research at CoinShares, pointed out that although the “four-year cycle” theory cannot withstand fundamental scrutiny, it has evolved into a self-fulfilling prophecy, prompting large investors to keep reducing their holdings.

Long-term holders have been selling off aggressively since September, with whale-level investors liquidating over $20 billion in assets, creating heavy selling pressure. Meanwhile, retail investors’ willingness to enter the market has cooled completely, market sentiment has fallen into extreme pessimism, liquidity continues to shrink, forming a vicious cycle.

Technical Indicators Show Oversold, But Bottom Signals Are Unclear

From a technical analysis perspective, the RSI indicator on Bitcoin’s daily chart has entered oversold territory, theoretically close to a rebound window. However, reality is more complex— the market is still in an “accelerated decline” phase, with short-term trends favoring the bears, and technical rebound signals being suppressed by fundamental factors.

Options traders’ positions reveal the market’s true sentiment, as traders are actively building downtrend protection measures. The $85,000 and $82,000 support levels are closely watched, with industry experts defining $85,000 as the most critical threshold. If Bitcoin can hold this level, a phased rebound may be triggered before the end of November; otherwise, a further drop below the $80,000 mark could occur, with unpredictable risks.

Why Haven’t US Tech Stocks and Employment Data Boosted Confidence?

Interestingly, NVIDIA’s third-quarter earnings report was impressive, with revenue reaching $57 billion. CEO Jensen Huang personally dismissed the “AI bubble” theory, leading to a temporary rebound in US stocks. However, this optimism has not spread to the crypto market; Bitcoin has been declining for over a month, even breaking below the daily upward trend line.

The US September non-farm payroll added 119,000 jobs, far exceeding the market expectation of 50,000. On the surface, this is a bullish signal. However, the unemployment rate rose to 4.44%, increasing for three consecutive months, which is the real concern for the market. Analysts point out that this report will be the most important employment reference ahead of the Federal Reserve’s rate decision next month. Market focus has shifted to whether the Fed will initiate a preemptive rate cut in December.

AI Wave and Rate Cut Expectations: Can They Save the Market?

Despite deepening the downturn, the long-term focus remains on the AI wave and Federal Reserve policy trends. Jensen Huang and Elon Musk are jointly advancing into Saudi Arabia to build a massive 500 MW data center, demonstrating that AI demand remains strong, and long-term growth momentum persists.

If internal disagreements within the Fed ultimately lead to a “preemptive rate cut” in December, liquidity injection could help stabilize and recover crypto assets. This may be the key variable to escape the current predicament.

Conclusion: Calmness in Panic Is the Key to Rebound

The current cryptocurrency market is experiencing a double blow of “leverage clean-up” and “institutional withdrawal.” Systemic risks similar to a financial crisis are frequently warning signs, and market sentiment has fallen to a freezing point. However, historical experience shows that oversold stages often harbor excellent opportunities for long-term positioning. Investors should closely monitor the $85,000 support level, stay clear-headed amid panic, and wait for the market signals after late November to seize the next rebound opportunity.