Bitcoin News Update: Investors Experience 'Intense Fear' Amid Crypto Market Hovering Around $3.7 Trillion Valuation

Bitcoin’s price has been largely stagnant lately, prompting some to liken its current state to a subdued IPO, as the market faces a mix of negative factors. Experts highlight shrinking on-chain liquidity, upcoming

unlocks, and significant institutional withdrawals as primary reasons for the cryptocurrency’s sluggish movement. The overall crypto market cap remains close to $3.7 trillion, reflecting widespread investor caution, according to .

Liquidity on-chain—a vital indicator for DeFi platforms—has dropped by $7.94 billion since reaching a high of $157.64 billion on October 27, now sitting at $149.7 billion. This sharp decline signals waning buying interest, with sellers taking control as uncertainty mounts. Making matters worse, more than $310.56 million worth of tokens are set to be unlocked in the next two weeks, including $51.26 million this week. Analysts warn that these new tokens entering circulation could intensify the downward trend in an already delicate market. “When tokens unlock during periods of fear, volatility increases as holders rush to sell before prices fall further,” explained blockchain analyst Alex Thorn.

Institutional withdrawals have added to the market’s woes. Exchange-traded funds (ETFs) for

and saw net outflows totaling $1.22 billion over just two days (October 29–30), based on DeFiLlama’s figures. This wave of selling from major investors has increased supply, putting further pressure on prices and discouraging smaller investors from entering the market. At the same time, corporate crypto acquisitions have dropped to a seven-week low of $364.98 million, a sharp decrease from the $6.67 billion peak in late August. Analysts note that such a decline in corporate buying often signals a prolonged period of price stagnation.

Recent blockchain activity paints a mixed picture. A prominent Bitcoin whale, known as Owen Gunden, moved 193.77 BTC (worth $21.49 million) to Kraken on November 2, according to

. However, this transaction has not yet sparked a broader upward trend. In a separate event, a liquidity sweep between $111,000 and $117,000 led to $240 million in liquidations, clearing out over-leveraged positions and helping to stabilize open interest, as reported in . While this could set the stage for a possible recovery above $115,000, technical indicators continue to limit price movement. The Fear and Greed Index, which measures market sentiment, is currently at 28—an “extreme fear” level—underscoring the fragile confidence among investors.

The outlook remains unclear. Should liquidity keep shrinking and token unlocks continue as scheduled, analysts expect ongoing downward pressure on the crypto market, possibly challenging support around a $3.5 trillion market cap, according to the Coinotag report. Still, positive developments such as regulatory improvements or favorable economic conditions could change the market’s direction. For now, investors are encouraged to focus on risk management and keep an eye on on-chain data for signs of stabilization.