Correction or reversal for investors?

Last week’s price drop felt like a cold shower, with Bitcoin falling more than 35% below its peak. Was this just a deep exhale in a bull market, or the start of a new downward trend? While that question hangs over the market, Bitcoin is quietly making its way into the world of government bonds, universities, and banks. Learn more in this edition of Market News.

Market update

Over the past week, crypto market prices have continued to decline. On Friday, November 21, Bitcoin dropped to €70,000: 15% lower than a week earlier and 35% below its peak of €107,500 on October 6.

Is this a correction within a bull market or the start of a new bear market? That question continues to dominate. Some investors are selling, believing the bull market peak is behind us. Others expect the bull market to continue, with prices climbing much higher.

Even in bear markets, there are periods of upward movement. Every trend includes movements that go against the prevailing direction. In a bull market, we call that a correction (downward). In a bear market, it’s known as a relief rally or counter-trend rally (upward).

We may soon enter another period of growth that will reveal more of the story. A rise above €107,500 would confirm that the bull market remains intact, marking a higher high (HH) on the weekly chart. A lower high (LH) following a break below the dominant average, however, would be an additional signal pointing toward a potential bear market.

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A new market for Bitcoin

This week, a headline appeared that might have easily been dismissed as “just another crypto thing.” New Hampshire has approved the first so-called bitcoin-backed municipal bond, or “muni,” as such bonds are called in the financial world.

Behind that headline lies a development far more significant than it first appears. Not because government funds are suddenly being used to buy Bitcoin — they’re not. What makes this news remarkable is where it’s happening: right in the heart of the most conservative, risk-averse corner of the U.S. capital market.

The bond isn’t being issued directly by the state, but through the Business Finance Authority — a kind of state agency that gives companies access to the muni market. And that market has its own strict traditions. The muni market is the domain of pension funds and insurance companies — institutions that don’t like surprises. Regulations are tight, risks are minimal, and collateral is rarely used. Most munis are backed by a city’s tax revenues or by income from the project being financed, such as the construction of a hospital or a toll bridge.

A bond backed by hard collateral — real, liquid assets — doesn’t typically fit in that world, let alone collateral viewed by many as a speculative investment. Yet that’s exactly what’s happening now. A company plans to borrow $100 million and will deposit 160% of that amount in Bitcoin with BitGo. If the collateral falls toward 130%, an automatic liquidation mechanism kicks in, ensuring that neither bondholders nor the state are exposed to risk.

But why would a company do this? There are two main reasons. First, it doesn’t want to part with its Bitcoin — these companies believe their holdings will appreciate in the long term. Second, interest rates in the muni market are relatively low. Altogether, it’s an appealing setup: raise cheap dollars, stay long on Bitcoin, and avoid the taxes that come with selling Bitcoin.

As mentioned, the real story isn’t about using BTC as collateral — borrowing against Bitcoin has been possible in private markets for years. The real breakthrough lies in the venue. Bitcoin is being admitted into a market segment that has long been completely closed to new types of assets — a market where risk is measured with surgical precision, and only assets deemed institutionally “suitable” are allowed in.

So New Hampshire hasn’t just approved a bond. It has opened a door — a small but meaningful gateway into a capital market through which billions flow every day.

Other news

• Harvard makes IBIT its largest stock holding. New filings reveal that BlackRock’s Bitcoin fund, IBIT, is now the largest position in Harvard’s endowment — the university’s investment fund. This is a remarkable development, given Harvard’s reputation for caution and its traditional aversion to ETFs. Bitcoin has now earned a stamp of approval from even the most conservative asset managers.

• BlackRock also aims to make Ether a yield-generating asset. The asset management giant has registered a trust in Delaware under the name iShares Staked Ethereum — a clear signal of its intent to launch a fund that passes staking rewards on to shareholders. This registration is merely a procedural step; the fund has not yet been formally filed with regulators. Earlier in October, asset manager VanEck took a similar step.

• OCC gives banks the green light for on-chain transactions. A new memo reveals that U.S. banks are now officially allowed to hold crypto to pay for network fees. While this may not sound like major news, it marks a clear shift in policy: banks are being encouraged to use blockchain infrastructure for purposes such as settlement and payments. The U.S. government is moving from “be cautious” to “go ahead and integrate it” — a quiet yet significant step toward institutional adoption.

• SEC Shifts from crackdowns to clarity. Under Chair Paul Atkins, the number of crypto-related lawsuits has dropped by around 30% this year. The tone is shifting from aggressive enforcement to clearer rules and open dialogue. Combating fraud remains a priority, but the fear of sudden legal action is fading. The result: a sector that’s regaining the confidence to build without constantly looking over its shoulder.

Satoshi Radio: In the latest episode of Satoshi Radio, you'll get a comprehensive update on the bitcoin price. It dipped below 90,000 dollar, triggering a broader sell-off. Has this heralded a bear market or not? The hosts also cover the most important news, from bitcoin miners interested in AI to the Harvard endowment fully committed to bitcoin.

This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.