Bitcoin faces 3 big problems as the cryptocurrency struggles to rebound amid 30% slide from record highs

Core Insights - Bitcoin is facing significant challenges as it approaches its worst month since June 2022, with prices around $88,000, approximately 30% lower than the October all-time highs of over $126,000 [1] Group 1: Institutional Investment Trends - Bitcoin exchange-traded funds (ETFs) experienced outflows of $3.5 billion in November, the largest since February, indicating a halt in institutional investment [2] - The selling pressure from these ETFs is expected to hinder market stability and recovery [2] Group 2: Market Capitalization and Stablecoin Activity - There has been a slowdown in stablecoin minting, with approximately $800 million flowing out of crypto back into fiat currencies last week, suggesting reduced capital inflow into the crypto market [3] - The total market capitalization for stablecoins has decreased by $4.6 billion through November 1, indicating a reversal of previous trends where stablecoins provided a safe haven during market volatility [4] Group 3: Market Sentiment and Future Expectations - Despite recent positive sentiment from dovish Federal Reserve comments, any potential rally is expected to be short-lived, with a hawkish cut anticipated in December [5][6] - Long-term holders have been selling during the downturn, possibly in anticipation of Bitcoin's historical four-year cycle, leading to skepticism about the repeat of past performance patterns [7]