Crypto Market Faces AI Bubble Pressure Amid Macro Volatility, Analysts Say

Quick Breakdown 

• Bitcoin’s price is stable, but market sentiment is at extreme fear levels, reminiscent of the 2020 crash.
• ETF outflows and whale accumulation indicate a mid-bull cycle supply redistribution.
• AI bubble and macro rate repricing amplify crypto volatility, but easing policies could fuel a 2026 rebound.

The crypto market is navigating a volatile macro environment as Bitcoin hovers around $92,000, yet sentiment has plunged to levels not seen since the 2020 COVID-19 crash. Analysts point to a combination of ETF outflows, retail panic selling, and structural whale rotations as key drivers of the market’s current consolidation phase. Despite price stability, fear dominates the market, highlighting a “supply redistribution” from short-term holders to long-term investors.

🤔 ETF panic? Whales selling? Market dying? Not exactly.

On-chain data shows a very different story and it matters.

Learn more

— HTX (@HTX_Global) November 24, 2025

ETF outflows and whale behaviour signal mid-bull rotation

On-chain data shows that spot Bitcoin ETFs have shifted from being steady buyers to seeing net outflows, with more than $2 billion pulled since November and a single-day record of $870 million. Mid-tier whales (10–1,000 BTC) have been taking profits, while the biggest holders (10,000+ BTC) continue to accumulate quietly, a sign of confidence from long-term players. At the same time, retail buyers are still putting money in, suggesting that more seasoned traders are treating fear-driven dips as buying opportunities. Altogether, it reflects the kind of reshuffling you typically see in the middle or later stages of a bull market.

Macro rates and AI bubble stress amplify crypto volatility

Beyond market flows, macroeconomic factors and the AI investment bubble are adding pressure. U.S. rate-cut expectations have been repriced, keeping liquidity constrained and risk-asset valuations under pressure. Meanwhile, the AI sector’s rapid expansion from 2023 to 2025 has crowded out capital and narrative space for crypto. Analysts warn that as AI valuations adjust, crypto could benefit from a rebound, with liquidity and investor attention shifting back into digital assets .

Global monetary easing, including stimulus in Japan and China and potential QE in Europe, may provide a tailwind for crypto in 2026. Experts suggest the current period represents a bottoming phase rather than a structural collapse, setting the stage for potential trend reversal in the next bull cycle. Bitcoin and major altcoins are expected to recover as macro liquidity conditions improve, institutional flows return, and narratives around decentralized finance regain prominence.

Building on its insights, HTX also suggests that stablecoins, alongside Real-World Assets (RWA), could be pivotal in connecting traditional and decentralized finance.