Bitcoin’s Fall to $83,000 Indicates a Fear-Driven Drop and Not a Structural Decline, Analysts Say

Additionally, ETF flows remain negative for the fifth week in a row, at -$3.3 billion month to date; even corporate buyers like MicroStrategy and Metaplanet have slowed accumulation | Photo credit: Dado Ruvic

According to Mudrex CEO Edul Patel, Bitcoin’s consolidation comes amid weakness in major financial markets as macroeconomic uncertainty makes investors cautious. He added that more than 65,000 Bitcoins were recently moved to exchanges by short-term holders, increasing selling pressure. But historically, such behavior often occurs near a market bottom.

“Bitcoin retreated to the $85,000 level after a brief climb to $92,000 following Nvidia’s earnings results. This pullback has been largely driven by growing macroeconomic uncertainty in the US. September jobs data showed higher-than-expected unemployment, raising concerns about the strength of the broader economy and potentially influencing the Federal Reserve’s stance on future interest rate cuts. Investors are advised to exercise caution and avoid aggressive, emotion-driven decisions take,” said Ashish. Singhal, co-founder of CoinSwitch, shared.

Additionally, ETF flows remain negative for the fifth week in a row, at -$3.3 billion month to date; even corporate buyers like MicroStrategy and Metaplanet have slowed accumulation. The latest on-chain data from VanEck shows that mid-cycle holders with 3- to 5-year coins are leading this selloff. However, ten-year-old whales are still arriving. This is a dynamic that is more in line with cyclical resets than structural capitulation, explains Vikram Subburaj, CEO of Giottus.

Macro conditions

He highlighted that macro conditions remain unfavorable, with the US Fed cut for December collapsing to 33 percent after the Bureau of Labor Statistics confirmed the slowdown in key employment data due to the government shutdown. The lack of new labor data and persistent 3 percent inflation has left policymakers divided and markets risk-averse.

Altcoins continued to fall, with Ethereum falling below $2.9K and testing key long-term support levels. Selling pressure increased after FG sold Nexus tokens to fund a stock buyback, while AI-linked tokens that briefly rebounded on Nvidia’s results also lost momentum as risk appetite weakened. Market flows show traders turning to short and multi-asset ETPs to hedge positions rather than exiting crypto.

“Bitcoin’s decline towards the $86,000 zone reflects a late-cycle reset, and not a structural failure. Key indicators, such as the bull rating at 20/100 and prices well below the 365-day average, show that markets are in a fear phase, especially as ETF outflows and macro uncertainty weigh on risky assets. The likely capitulation margin is between $84,000 and $73,000. This is close to the cost basis of large institutional holders. As disciplined investors, increased stablecoin reserves and long-term whale accumulation indicate that patience and diversified buying remain the most prudent strategies,” he noted.

Published on November 21, 2025