Bitcoin is in a bear market. What's driving the sell-off?

Market Overview - Bitcoin has fallen below $100,000, marking a bearish trend as it has decreased by 20% from its last all-time high in early October [1][3] - The overall crypto market is under strain, with approximately $19 billion in liquidations leading to a loss of over $1 trillion in total market capitalization [1] Adoption and Market Dynamics - Despite the decline in prices, real-world adoption of blockchain technology is increasing, with major institutions like JP Morgan and BlackRock utilizing it to enhance their processes [2] - There is a disconnect between the growing number of crypto instruments and the lack of demand to absorb them, resulting in market oversupply [2] Institutional Perspectives - Institutions are beginning to view Bitcoin as a portfolio diversifier, with predictions that it could surpass gold as a larger asset class by 2035 [2] - The sentiment among institutional investors is cautious, with concerns about liquidity and the Federal Reserve's potential actions affecting market dynamics [3] ETF and Market Sentiment - Recent ETF outflows have been significant, with the largest daily outflows since inception occurring recently, indicating a lack of new marginal buyers in the market [3] - Analysts are monitoring the $93,000 level for Bitcoin, as falling below this could lead to further declines [3] Altcoin Market - The altcoin market, including protocols like Avalanche, is experiencing a disconnect between increasing real-world use cases and declining token prices [2] - There is a belief that the current market has too many altcoins, with only a handful expected to remain relevant in the long term [2] Investment Strategies - Companies are developing more sophisticated investment products to cater to Bitcoin bulls, including options that offer yields and aim to mitigate volatility [5][6] - The performance of companies like MicroStrategy is being compared to Bitcoin, with the latter showing better year-to-date performance despite the volatility [6][7]