Bitcoin experienced a significant selloff on Tuesday, plunging below the critical six-figure mark to lows around $99,000 before rebounding slightly to hover near $101,700. This decline, marking a fall of approximately 6% day-over-day, represents the lowest price point for Bitcoin since June.
The downward trend occurred amid a lackluster performance in U.S. equities— the Nasdaq and S&P 500 had experienced year-to-date gains of 20.9% and 15.1% respectively as of Tuesday’s close, highlighting Bitcoin’s lag behind other risk assets throughout much of 2025. This divergence in market performance coincided with a concerning trend in exchange-traded funds (ETFs) showing consecutive net outflows from U.S. spot Bitcoin funds. According to data from Farside/SoSoValue and other sources, there was a cumulative outflow of approximately $1.3 to $1.4 billion over four trading days into early November, primarily driven by BlackRock’s IBIT.
In a recent video analysis, Joe Consorti, the Head of Growth at Horizon (Theya, YC), suggested that the recent selloff does not indicate a lack of confidence in Bitcoin. Instead, he described it as a structural transition in ownership of the cryptocurrency. He characterized the movement to $99,000 as typical of a “bull market drawdown,” contrasting it with behavior observed in traditional equities which might interpret such a shift as the onset of a bear market. Consorti emphasized that Bitcoin has endured two prior 30% drawdowns in this current bull run, positioning the latest movement as a “transfer of Bitcoin’s ownership base from the old guard to the new guard.”
This perspective aligns with a framework proposed by macro investor Jordi Visser, who described Bitcoin’s current phase as a “silent IPO.” In his widely circulated Substack essay, Visser argued that the rangebound pricing in 2025 reflects a systematic distribution of Bitcoin as early investors seek liquidity and diversification through accessible channels like ETFs and institutional custodians.
Consorti pointed out visible signs of this ownership churn on-chain, noting that wallets from the Satoshi era and miner addresses have recently become active again after long periods of dormancy. While not definitively indicative of market selling, these movements suggest a redistribution of Bitcoin from concentrated holders to a broader, more regulated audience.
Despite the downturn, Consorti framed the price drop as part of a healthy “digestion” process rather than exhaustion. He indicated that the current relative strength index (RSI) shows Bitcoin is at its most oversold level since April, suggesting this correction could ultimately build support rather than undermine it.
However, macroeconomic factors remain a pressing concern. Following the Federal Reserve’s cut to interest rates at the end of October, Chair Jerome Powell cautioned against assuming further cuts would come automatically, implying uncertainty ahead. Consorti warned about Bitcoin’s strong correlation to risk assets, noting that significant declines in equities or renewed funding concerns could adversely impact the cryptocurrency market.
While ETFs may offer some stability in absorbing legacy supply, their introduction has also created a faster-moving set of investors. This week’s outflows from IBIT highlighted the complexity of this dynamic, even as total assets under management remain substantial by historical standards.
In summary, while the recent price fluctuations in Bitcoin may seem alarming, experts like Consorti advocate for patience and a long-term outlook. He posited that for every seller looking to liquidate, a new buyer is stepping in for longer-term investment. The coming days will determine if Bitcoin can reclaim and stabilize above the $100,000 mark, a crucial level that could dictate the future direction of its market dynamics. As of the latest update, BTC was trading at $101,865.
