Bitcoin Hit Hard In The Short-Term

Readers need to digest Bitcoin getting whacked over the head with a glass beer bottle.

Bitcoin’s brutal 21% selloff from its October peak to sub-$96,000 levels signals to us that we are stuck in risk-off mode.

November is usually the time for the Santa Claus rally, but a series of high-profile gaffes by tech CEOs bombing media interviews has really tanked sentiment across the board.

Then take into consideration rumors that Bitcoin has been hacked by China, and readers might understand why the digital gold has been given the cold shoulder of late.

Tech stocks, in many circles, are positively correlated with the price of Bitcoin. When investors have money to spend on Bitcoin, they almost always have the capacity to splurge on a tech stock or two.

The selloff signals that the goalposts are narrowing, and scoring that decisive goal will be that much harder in the short-term.

It’s not a time to bet the ranch on digital assets.

We very well might get a dead cat bounce, then Bitcoin will head closer to $90,000 per coin.

Spot ETF outflows and over $1 billion in liquidations, BTC has erased post-halving gains, signaling fragility in leveraged bets and institutional confidence.

This isn’t mere sympathy pain; it’s structural linkage.

As Fed hawkishness clashes with tariff threats, big tech—AI darlings like Nvidia and Meta—faces valuation resets, margin squeezes, and sentiment erosion, turning BTC’s capitulation into a sector-wide reckoning.

Institutional outflows are the transmission belt, converting crypto bleed into tech hemorrhage.

November’s $2.5 billion ETF redemptions—led by BlackRock’s (IBIT)—reflect pensions and endowments slashing “tech proxy” exposure.

MicroStrategy (MSTR) cratered 18% to $220 as its 250,000 BTC hoard lost $5 billion in value and Coinbase (COIN) shed 12% to $185.

Macro headwinds fan the flames, making BTC’s drop a catalyst for tech’s structural woes. December Fed cut odds plunged to 75% on hawkish jobs revisions, starving the easy-money spigot that juiced 25% Nasdaq YTD gains.

VIX spiked to 25, options hedging tripled, and Russell 2000 small-caps tanked 2.2% as defensives rose 1%, leaving big tech isolated.

When crypto heats up, fueled by retail frenzy and institutional inflows, it spills over into tech optimism—think AI hype boosting Nvidia or cloud plays like Amazon.

But in reversals, the dynamic flips: Bitcoin’s slide acts as an early warning siren for risk assets. The October 10 flash crash, sparked by U.S. tariff threats on Chinese tech imports, exemplified this, with BTC plunging 15% while the Nasdaq Composite dropped 3.56% in tandem.

Institutional capital flight is the accelerant here, turning a crypto wobble into a tech tremor. The $1.8 billion ETF exodus underscores how quickly sentiment sours.

At the bare margins, I believe there won’t be some astronomical surge higher in prices in the price of BTC. Therefore, investors would do well to short any short-covering rally.

Sentiment and momentum have dried up like the Saharan desert, and that is why the incremental dollar to move BTC higher has vanished.

Readers need to understand where we are in the cycle, and BTC has a lot to prove in the short-term, and I think they will disappoint.

Short BTC rallies in the short-term through MSTR & IBIT.