Following its roughest week since the summer, Bitcoin is experiencing a downturn that multiple analysts believe presents a clear buying opportunity.
BTC slid to roughly $68,000 overnight, hitting its weakest point since August and dropping more than 20% compared to early October. The cryptocurrency bottomed out at $67,770 as total liquidations exceeded $1.6 billion, with approximately 89% of those wiped-out positions consisting of longs.
According to several market observers, the root cause is not an issue inherent to Bitcoin itself, but rather the upcoming Anthropic IPO.
Why The Anthropic IPO Is Weighing On Bitcoin
Anthropic, the creator of the Claude chatbot, is currently lining up one of the largest stock market debuts in history. The company established a price target range spanning $70 to $78 per share, offering 825 million shares to secure approximately $64.4 billion. Pricing is slated for Nov. 18, with Nasdaq trading to commence on Nov. 19.
Market enthusiasm has been immense, with order books for the offering running roughly six times oversubscribed, according to CoinDesk.
That immense demand requires funding. Seamus Rocca, CEO of Xapo Bank, suggests that investors are liquidating accessible assets like Bitcoin to gather capital for their IPO allocations—mirroring the exact market behavior witnessed prior to the SpaceX listing earlier in the year.
In essence, this represents a short-term reallocation of capital rather than a rejection of Bitcoin.
The SpaceX Playbook Points Higher
This is where the situation grows compelling, as the previous instance of a mega-IPO draining money from the crypto sector marked a definitive turning point.
Matt Cole of Strive pointed out that Bitcoin dropped 19% across the 50 days leading up to the SpaceX IPO. During the equivalent timeframe ahead of the Anthropic debut, it has declined by 18%, showcasing a nearly identical trend.
Should history repeat, Cole indicates that Bitcoin could rally back toward $90,000 by late February, representing an upside of greater than 30% relative to current values.
The reasoning remains straightforward: once the IPO pricing is finalized and allocations are secured, the forced selling pressure subsides. Capital previously held on the sidelines can subsequently rotate back into risk assets, including cryptocurrencies.
Fear Is Running High, And That’s Often Bullish
Market sentiment offers another rationale for viewing the pullback as an accumulation window. Chris Sullivan of Hyperium Decimus highlighted widespread fear across crypto markets, noting that short open interest has now surpassed its August peak.
This specific combination historically triggers aggressive rallies. When an excess of traders positions themselves for further downside, even a modest upward price movement can compel them to cover their short positions, accelerating a price surge.
Furthermore, the selling does not appear rooted in deteriorating crypto fundamentals. Mark Connors of Risk Dimensions characterized the movement as a general deleveraging trend tied to the AI sector, noting that precious metals slumped alongside Bitcoin as investors broadly reduced risk exposure.
Simultaneously, development of the Bitcoin network persists. Lightning Labs recently rolled out payment functionality for AI agents, establishing a fresh utility case for BTC within the very technological sector currently capturing investor attention.
Bitcoin Price Levels To Watch
For bullish traders, the immediate objective is recapturing the $70,000 threshold. Securing a position above that psychological marker would indicate that buyers are reclaiming momentum.
Beyond that point, $76,000 serves as the primary resistance zone, representing the level Bitcoin defended throughout last week’s sell-off prior to its breakdown. A successful push past this threshold would bring the $80,000 range back into focus.
Conversely, downside protection centers around $67,770. Maintaining support above this weekly low would help validate the formation of a market bottom ahead of the Nov. 19 public listing.
Significant risks remain present. MSCI’s proposal to remove Strategy from its global indexes could prompt enforced liquidation of the firm’s equity, while inflation proves persistent. Nevertheless, for long-term investors, a liquidity-induced correction occurring prior to a known catalyst represents the exact market setup many anticipate. For additional updates, follow the latest Bitcoin news.
What do you think?
Is Bitcoin’s dip to $68,000 a buying opportunity before the Anthropic IPO, or will the selling continue until the listing is done?
Written by
Yuki Yamamoto
