TL;DR
- Placeholder VC claims the crypto market reached a top and is now entering a prolonged selling phase, driven by institutional outflows.
- Bitcoin’s sharp decline and massive liquidations in November accelerate the downturn across major assets.
- Despite the selloff, analysts argue that a deeper correction strengthens the long-term bullish outlook, clearing speculative capital and preparing the next sustainable cycle.
Bitcoin records one of its worst months since 2022 as partners from firms such as Placeholder VC and Alliance DAO suggest that the correction has not finished. With sharp price swings, ETF redemptions and weakening signals in key assets, the discussion is now centered on the market path watched closely by major funds and crypto projects.
Placeholder VC Revives the Debate Over a Market in Decline
Chris Burniske, partner at Placeholder VC, maintains that the current stage mirrors a classic long cycle where rapid increases tend to be followed by persistent selling. His position gained traction after Bitcoin dropped more than 30% from its record high, pushed by liquidations of over $1.9 billion.
Alliance DAO reinforces a similar view, pointing to a downturn that requires the exit of speculative capital before a healthier market can emerge. The thesis indicates that capital entering during the latest crypto boom is unwinding after failing to secure sustained returns, leaving weaker long positions exposed.
Institutional Retreat Marks the Beginning of the Selling Era
Institutional outflows have become a central element of the downturn. A group of 12 US-listed Bitcoin ETFs registered $903 million in redemptions in a single day, reducing buying pressure and reinforcing price declines. Bloomberg data shows a 35% drop in open interest for perpetual futures since the October peak of $94 billion, signaling limited appetite to buy the dip in the short term.
The impact spreads beyond Bitcoin. Ethereum fell below $2,700, with liquidation spikes surpassing $1 billion within short periods, highlighting forced selling by traders and leveraged funds.
A Correction That Supports a Long-Term Bullish View
Some experienced traders defend the current selloff as a healthy step for the asset class. Veteran market participant Peter Brandt describes this stage as beneficial, clearing weak entries and leaving room for a more stable cycle. Historical models also suggest that Bitcoin tends to regain strength roughly one year after its top in post-halving periods.
The pro-crypto view argues that this reset phase is not a threat but a structural opportunity. Less leverage and reduced speculative pressure could strengthen the foundations for the next upward move, driven by steady institutional participation and organic demand rather than momentum-driven capital.
