Bitcoin was trading around $75,773, still below $76,000 after a sharp Nov. 5 decline that followed $430.2 million in net outflows from U.S. spot Bitcoin ETFs.

CoinGlass recorded $1.05 billion in crypto liquidations over the prior 24 hours, with long positions accounting for 88.2%, or $930.04 million.

A rebound toward $76,500 could suggest stabilization if support holds, but a sustained move back above $81,000 would be needed for a stronger bullish reversal.

A durable recovery would likely require renewed capital inflows, stronger ETF demand and enough buying to absorb selling pressure; inflation, Federal Reserve policy, AI spending expectations and Iran diplomacy could also shape risk appetite.

On-chain indicators and sentiment offer competing signals, with individual investors fearful while whales are accumulating.

Wu cautions that pressure on institutional holders does not mean crypto adoption has failed, but reflects an adjustment as traditional finance engages with crypto market cycles.

The analyst argues that market structure matters more than the historical tendency for cycle lows to occur in the fourth quarter.

One view treats the decline as a pullback within an uptrend rather than a bear market, while noting that clear signs of a bottom have not emerged.

The October Consumer Price Index report due Nov. 10 is a key near-term catalyst ahead of the Federal Reserve’s Dec. 8–9 meeting; other events include the Nov. 11 MSCI review, Fed minutes on Nov. 18, and October PCE and third-quarter GDP data on Nov. 25.

Investors are also watching Federal Reserve balance-sheet data, bank credit trends and the incoming Congress’s early agenda for signals about liquidity and regulation.

Expectations for AI infrastructure are influencing valuations across risk assets, while regulatory moves or easing volatility could intensify or temper swings in technology stocks and digital assets.

The broader question is whether AI financing and crypto liquidity are connected through bank balance sheets, and how forthcoming AI IPOs might affect both markets.