Bitcoin has fallen from its all-time high of $126,000 to approximately $80,000, erasing over $600 billion in market capitalization. The cryptocurrency currently trades near $87,000 as traders monitor critical support zones. Three primary factors are driving the downturn: Federal Reserve policy shifts, institutional capital outflows combined with leveraged position liquidations, and tightening global liquidity conditions.

Texas established the first U.S. state strategic Bitcoin reserve with an initial $10 million allocation. On November 20, the state purchased $5 million worth of BlackRock's iShares Bitcoin Trust at $87,000 per BTC. The remaining $5 million has been reserved for future acquisitions.

JPMorgan has launched a structured note tied to BlackRock's spot Bitcoin ETF (IBIT), according to a filing with the U.S. Securities and Exchange Commission. The investment vehicle targets institutional clients and offers tiered returns based on IBIT's price performance. Investors can earn a 16% return if the ETF reaches its target price by 2026, with an extended opportunity window through 2028 if the initial target is not met.

U.S.-listed spot Bitcoin exchange-traded funds recorded $129 million in net inflows on November 25, while Ethereum-focused ETFs attracted $78 million. Fidelity's Bitcoin fund led with $170.80 million in inflows, and BlackRock's Ethereum trust topped Ether products with $46.09 million. The inflows marked the third consecutive day of positive flows for Ethereum funds.

BlackRock's spot Bitcoin ETF recorded net outflows exceeding $66 million across November 24-25, according to Coinglass data. IBIT saw $149.1 million in redemptions on November 24, followed by $83 million in inflows the next day. The withdrawals occurred as Bitcoin rebounded toward $88,000, marking a shift from IBIT's previous position as the dominant inflow leader among U.S. spot Bitcoin ETFs.

Bitcoin's recovery attempt has stalled around $87,500-$88,000 after dropping below $81,000, prompting debate over whether a bottom has formed. Bearish social sentiment, negative MVRV ratios, and six consecutive weeks of whale selling suggest further downside risk. Analysts note a short-term bounce above $90,000 remains possible, though momentum indicators point to continued weakness.

Texas completed a $5 million purchase of BlackRock's iShares Bitcoin Trust on November 20, with an additional $5 million allocated for direct Bitcoin acquisition. Lee Bratcher of the Texas Blockchain Council confirmed the two-phase approach, stating the ETF position serves as an interim step pending custody infrastructure completion. The $10 million total allocation comes from state general revenue under a framework approved in June that permits digital asset holdings exceeding $500 billion in market capitalization.

Bitcoin has maintained support above $80,000 since dropping to that level on November 21. On-chain data show institutional wallets reducing positions while mid-sized holders accumulate. Technical indicators point to weakening selling pressure, though distribution from large whale cohorts continues.