Bitcoin’s decline on November 14 caught the market off guard as the asset briefly slipped below the $100,000 threshold for the first time since May. BTC reached an intraday low of $96,841 during what traders described as one of the sharpest intraday swings in months. The move prompted an immediate question across trading desks: was this just a momentary panic, or the early sign of a deeper shift?
Part of the answer became clearer in the on-chain data. Long-term holders — typically the most resilient participants in the market — released an unusually large amount of supply. Over the past 30 days, these holders sold roughly 815,000 BTC, marking the largest wave of selling since early 2024. Analysts noted that this rapid surge in available supply overwhelmed demand, contributing directly to the downward pressure.
Macro Pressure Builds as Markets Reprice Fed Expectations
The selling did not occur in isolation. A shift in expectations around Federal Reserve policy added stress across global markets. Traders had been anticipating a potential rate cut in December, but delays in key U.S. economic data — partly due to government shutdown disruptions — pushed those expectations further out. With uncertainties rising, risk assets became more vulnerable, and Bitcoin moved in the same direction.
Derivatives markets accelerated the downturn. More than $1.022 billion in leveraged crypto positions were liquidated within hours, including $887 million in long positions that were positioned for further upside. The cascade of liquidations triggered automated sell flows and amplified volatility across major exchanges.
ETF Outflows Add Another Layer of Stress
The weakness extended into the U.S. spot Bitcoin ETF market. Bitcoin ETFs recorded approximately $867 million in net outflows on November 13, marking the second-largest single-day withdrawal on record. While ETF outflows often reflect profit-taking rather than severe panic, the timing intensified already-fragile sentiment.
Even so, total ETF assets under management remain historically elevated. Analysts noted that these patterns are consistent with a mid-cycle correction rather than a broader collapse in demand.
Institutions Accumulate More Than $405 Million in Bitcoin
While long-term holders reduced exposure, institutions moved in the opposite direction. Large transfers totaling 4,094 BTC — worth about $405 million — were tracked moving into the custody of Anchorage Digital, a major institutional custodian. The inflows originated from significant market participants including Coinbase, Cumberland, Galaxy Digital, and Wintermute.
Institutional accumulation during periods of market stress has historically preceded recovery phases. Although it doesn’t guarantee an immediate rebound, the behavior suggests that large-scale players continue to maintain long-term confidence in Bitcoin’s value.
Interest from traditional finance extended beyond Bitcoin itself. ARK Invest added to its crypto-related equity holdings, purchasing 242,347 shares of BitMine and expanding positions in both Circle and Bullish, signaling continued institutional appetite for blockchain-linked assets despite market volatility.
Is Bitcoin Undervalued? Analysts Make the Case
The recent volatility prompted several analysis firms to reassess Bitcoin’s relative valuation. Since mid-August, Bitcoin has fallen around 15%, while gold has risen 21% and the S&P 500 has climbed roughly 7%. The unusual divergence has led some analysts to argue that Bitcoin may currently be undervalued relative to traditional hedging assets.
Glassnode’s profitability models reinforce this interpretation. Approximately 85% of circulating Bitcoin remains in profit, a condition historically associated with mid-cycle pullbacks rather than cycle-ending peaks.
What Comes Next?
Market participants are watching a narrow trading zone with resistance around $101,000 and support near $96,000 — levels expected to influence short-term direction. A break below support could lead to deeper weakness, while a sustained move above $100,000 may quickly restore confidence.
Beyond the technical picture, the broader trend points to a redistribution phase. Long-term holders are locking in profits after a strong year, while institutions and large market players absorb supply at lower prices. Historically, similar patterns have formed the foundation for subsequent upward momentum.
If macroeconomic conditions stabilize — particularly with clearer guidance from the Federal Reserve — Bitcoin may recover more quickly than current sentiment suggests.
So while the drop below $100k sparked immediate concern, the underlying data indicates this moment represented more than a temporary panic. It marked a significant transfer of supply from older holders to institutional buyers preparing for what could be the next major stage in the market cycle.