Bitcoin ETF Faces Turbulence Amid Market Correction: Technical Indicators Signal Caution

The iShares Bitcoin Trust (IBIT) has extended its losses, declining 4.27% to $50.43, closely mirroring Bitcoin's own 4.32% drop to $88,901. This movement is part of a broader market correction that has seen the ETF fall 15.84% over the past five trading days, erasing its earlier gains and now showing a slight 0.74% year-to-date loss. The current technical analysis consensus strongly signals a 'Sell' rating, with bearish indicators significantly outweighing bullish ones—15 Bearish ratings compared to just 5 Bullish. This technical posture suggests that the short-term momentum remains downward, and traders are advised to exercise caution. Investor sentiment appears deeply negative, as evidenced by portfolio data showing only 1.9% of investment portfolios currently holding any exposure to IBIT. This low adoption rate among mainstream portfolios indicates that institutional and retail investors are either sidelined or have reduced their positions amid the volatility. The active buyer demographic for the trust is reported to be concentrated within a specific segment, though the text cuts off, hinting at a niche or specialized group driving what little demand exists. This lack of broad-based buying pressure contributes to the asset's vulnerability during market downturns. Looking forward to 2026, the performance of IBIT remains intrinsically tied to Bitcoin's price action and broader cryptocurrency market dynamics. While the current correction presents a challenging environment, the fundamental case for Bitcoin as a digital store of value and its growing integration into traditional finance through vehicles like ETFs remains intact. However, the immediate technical outlook and negative sentiment suggest that further consolidation or testing of lower support levels may be necessary before a sustainable recovery can begin. Investors should monitor key technical levels, macroeconomic factors influencing risk assets, and any shifts in regulatory sentiment that could impact ETF flows and Bitcoin's valuation in the coming months.

iShares Bitcoin Trust (IBIT) Extends Losses Amid Bitcoin Market Correction

The iShares Bitcoin Trust (IBIT) fell 4.27% to $50.43, mirroring Bitcoin's 4.32% drop to $88,901. Over five days, the ETF has declined 15.84%, now showing a 0.74% year-to-date loss. Technical indicators signal a Sell consensus, with 15 Bearish ratings outweighing 5 Bullish ones.

Investor sentiment remains deeply negative, with only 1.9% of portfolios holding IBIT exposure. Active buyers predominantly fall within the 35-55 age demographic. Vetle Lunde of K33 Research notes Bitcoin's 30% drawdown over 43 days ranks among its steepest corrections since 2017.

"This volatility underscores why crypto isn't a safe harbor," said AJ Bell's Danni Hewson. The selloff reflects Bitcoin's sentiment-driven nature, where fear can trigger cascading exits.

Bitcoin Drops as Fed Minutes Reveal Unexpected Developments

Cryptocurrency markets faced renewed pressure as the U.S. Federal Reserve's latest meeting minutes introduced fresh uncertainty. bitcoin led the decline, shedding value alongside other major digital assets as traders digested the implications of the central bank's policy stance.

The Bureau of Labor Statistics' cancellation of October's employment report created an information vacuum, forcing the Fed to navigate without crucial economic data. This marks the first such occurrence since 2013, raising questions about the reliability of remaining indicators.

Market participants braced for potential volatility ahead of Nvidia's earnings report, with over $1 billion in liquidations anticipated across crypto derivatives markets. The $540 million in liquidations already recorded reflects growing risk aversion among traders.

Canaan Stock Surges 21% on Record Q3 Earnings and Bitcoin Mining Demand

Canaan Inc., a leading Bitcoin mining hardware manufacturer, saw its shares jump nearly 21% after reporting a 104% year-over-year revenue increase to $150.5 million in Q3. Mining equipment sales dominated the quarter, accounting for $118.6 million of total revenue, while North American clients contributed 31% of sales—a clear signal of renewed institutional demand.

The company's mining revenue skyrocketed 241% to $30 million, fueled by what CFO James Jin Cheng described as 'substantial volume of new orders' from U.S. buyers. This performance marks a dramatic recovery for the sector after 2022's crypto winter, with Canaan's stock closing at $1.03 amid renewed market optimism.

FOMC Minutes Reveal Divisions Over December Rate Cuts, Bitcoin Reacts

Federal Reserve officials remain divided on the prospect of further interest rate cuts this year, according to the latest FOMC minutes. Several members argued against additional reductions in December, citing concerns over reigniting inflation. "A more cautious approach might be appropriate," one official noted, reflecting a shift toward neutrality in monetary policy.

The labor market's gradual cooling has added complexity to the Fed's calculus. While some policymakers see room for accommodation, others warn that premature easing could undermine progress on price stability. This uncertainty has spilled over into cryptocurrency markets, with Bitcoin posting declines amid the Fed's hawkish tilt.

Market participants appear to be recalibrating expectations for year-end liquidity conditions. The minutes suggest the central bank is prioritizing inflation containment over growth stimulation—a stance that typically weighs on risk assets. Digital currencies, which have benefited from the low-rate environment, now face headwinds as monetary policy enters a holding pattern.

The Fed Faces a Tough Choice on Interest Rates as Bitcoin Dips

Bitcoin's decline persists despite the release of the Federal Reserve's October meeting minutes, which unexpectedly reinforced bearish sentiment. Market expectations for a December rate cut have dwindled, shifting focus to the Fed's internal debates and their implications for monetary policy.

The October decision saw near-unanimous support for a 25 basis point cut, with notable dissent from two officials. Miran, a Trump-appointed Fed representative, pushed for a more aggressive 50 basis point reduction, while Schmid opposed any cut, citing concerns about rising inflation expectations. His hawkish stance warrants close monitoring as it may signal tighter policy ahead.

Chair Powell and key voting members Williams and Barr supported the modest cut, with Williams and Waller historically favoring faster easing. The minutes suggest heightened probability of unchanged rates in December, contributing to recent market declines.

Peter Brandt Predicts Bitcoin Could Drop to $58K Amid Bearish Market Signals

Veteran trader Peter Brandt warns of a potential Bitcoin decline to $58,000 as bearish technical patterns solidify. The cryptocurrency has recorded eight consecutive lower highs since November 11, completing a broadening top formation—a classic reversal signal.

Key moving averages now act as resistance, with Bitcoin trading below both the 8-day and 18-day benchmarks. The ADX indicator confirms strengthening downward momentum, while critical levels emerge at $81,000 resistance and $58,000 support.

Market-wide liquidations exceed $1 billion as Bitcoin struggles below $100,000. Brandt's analysis suggests the downtrend may persist, with the descending channel pattern offering little near-term Optimism for bulls.