Bitcoin holders are experiencing significant anxiety and some degree of panic-selling following delays in the approval of Bitcoin exchange-traded funds (ETFs), but the situation is complex and influenced by multiple factors beyond just ETF delays.
The recent market environment shows Bitcoin struggling below the psychologically important $110,000 level, having dipped briefly under $100,000 for the first time since June 2025. This price drop followed a sharp correction from an October peak near $126,000, wiping out over $1 trillion in market value since early October. The Crypto Fear & Greed Index has plunged into “Extreme Fear,” indicating widespread investor concern and panic-selling behavior[2].
One major factor contributing to this turmoil is the delay in regulatory approvals for Bitcoin and other cryptocurrency ETFs by the U.S. Securities and Exchange Commission (SEC). The SEC’s review process has been slowed by external events such as the U.S. government shutdown that began in October 2025. This shutdown caused a bottleneck in the regulatory process, delaying decisions on numerous crypto ETF proposals. Despite these delays, filings for crypto exchange-traded products continue to increase, with over 155 proposals covering 35 digital assets, including Bitcoin, Solana, Ethereum, and XRP[1].
The anticipation of ETF approvals has been a significant driver of optimism in the crypto market. ETFs are seen as a way to bring more institutional and traditional investors into the crypto space by providing regulated, accessible investment vehicles. When the SEC approved spot Bitcoin ETFs in early 2024, it was expected to be a major milestone that would boost Bitcoin’s price and adoption. However, the subsequent market behavior has been volatile, with some analysts suggesting that ETFs have also contributed to increased speculative trading and price swings[3].
The current market correction and panic-selling are not solely due to ETF delays. Other macroeconomic factors are at play, including tightening global liquidity, a hawkish stance from the U.S. Federal Reserve, and profit-taking by long-term Bitcoin holders. These elements have combined to create a “mid-cycle reset” in the crypto market, reflecting a more mature and volatile phase rather than a simple bull or bear market scenario[2].
Despite the recent downturn and panic-selling, many experts remain cautiously optimistic about Bitcoin’s medium-term outlook. Analysts note that the $100,000 level is a critical support point, and while the market is in a corrective phase, it is not necessarily headed for a prolonged bear market. Some see the current sell-off as a shakeout or capitulation phase that often precedes a rebound. This phase is characterized by mass liquidations of long positions, which historically have signaled local bottoms and potential new growth opportunities[4].
In addition to Bitcoin ETFs, there is growing interest in altcoin ETFs, with proposals for products covering assets like Ethereum, Solana, and XRP. These altcoin ETFs are also awaiting regulatory approval, and their arrival is expected to further diversify crypto investment options. Industry experts predict that traditional investors will prefer diversified or actively managed ETFs over single-token products, which could help stabilize the market once approvals are granted[1].
In summary, Bitcoin holders are indeed showing signs of panic-selling amid the delays in ETF approvals, but this behavior is intertwined with broader market corrections, macroeconomic pressures, and profit-taking dynamics. The regulatory delays caused by the government shutdown have temporarily stalled the influx of new investment vehicles, contributing to uncertainty. However, the continued filing of ETF proposals and expert confidence in eventual approvals suggest that the market may stabilize and recover once these products become available and macro conditions improve.