On November 14, 2025, Bitcoin confirmed a significant market shift by breaking below the crucial $100,000 level, plunging to a six-month low under $97,000 as a dramatic reassessment of U.S. monetary policy prospects triggered a broad retreat from risk assets.
The Macroeconomic Trigger
The primary driver behind the sell-off was a sharp reversal in market expectations for U.S. interest rates. The previously high probability of a Federal Reserve rate cut in December collapsed from nearly 99% to approximately 50% following cautious, “hawkish” commentary from several Fed officials. This shift signaled to the market that the era of cheap capital might persist for longer than anticipated, increasing the cost of holding non-yielding assets like cryptocurrencies. This reassessment created a risk-off environment that negatively impacted high-valuation tech stocks and crypto assets simultaneously.
A Cascade of Selling Pressure
The price decline triggered a violent chain reaction within the crypto market. As Bitcoin’s price fell, it forced the closure of highly leveraged bullish bets. Over a 24-hour period, total cryptocurrency liquidations soared past $1 billion, with the vast majority—over $880 million—being long positions. This created a self-reinforcing downward spiral; forced selling to cover margin calls added further downward pressure on the price.
The sell-off was not confined to retail speculators. On-chain data revealed that long-term Bitcoin holders, defined as those holding coins for more than 155 days, initiated their most significant selling wave since January 2024, offloading approximately 815,000 BTC over the preceding month. Concurrently, institutional demand waned, with U.S. spot Bitcoin ETFs experiencing a massive single-day outflow of nearly $8.7 billion, the second-largest withdrawal since their launch.
Market Impact and the Road Ahead
The sharp drop pulled Bitcoin into a technical bear market, down over 20% from its October peak. The volatility highlighted the asset’s continued sensitivity to macro-financial conditions and raised questions about near-term price stability. Analysts identified the next critical support level around $94,000, which represents the average cost basis for investors who entered the market over the previous 6 to 12 months. A break below this level could signal a deeper and more prolonged correction.
For investors and market participants, this episode serves as a stark reminder of the intrinsic volatility in digital asset markets and their tight correlation to broader macroeconomic sentiment, particularly U.S. monetary policy. The market’s focus is now firmly set on upcoming economic data releases, delayed by the recent government shutdown, and any further communication from the Federal Reserve for clues on whether this is a short-term correction or the start of a more sustained downturn.
