On November 18, 2025, Bitcoin fell below the critical $90,000 mark, reaching a low near $89,420 and effectively erasing all its gains for the year. This decline marks a dramatic reversal of fortune, coming just six weeks after the cryptocurrency hit an all-time high near $126,250. The drop has sent waves of uncertainty through the digital asset world, wiping an estimated $1 trillion from the total cryptocurrency market capitalization since October and pulling major altcoins like Ether and Solana down with it.
A Perfect Storm of Selling Pressure
This sharp correction wasn’t caused by a single factor, but by a confluence of technical, macroeconomic, and institutional pressures. A significant technical development, known as a “death cross”, occurred as Bitcoin’s 50-day moving average crossed below its 200-day moving average. This pattern, often interpreted as a bearish signal by traders, was accompanied by a break below other key support levels, accelerating the sell-off.
Underlying these technical triggers were deeper macroeconomic worries. Concerns that new trade tariffs could fuel inflation and delay interest rate cuts from the Federal Reserve have created a “risk-off” environment. In such conditions, investors tend to retreat from speculative assets, and Bitcoin was no exception. This led to a noticeable slowdown in inflows from corporate buyers and a stalling of the once-steady investments into U.S. spot Bitcoin ETFs. The market sentiment plummeted, with the Crypto Fear & Greed Index hitting 11, its lowest level since the 2022 bear market, indicating “extreme fear” among investors.
The market’s own structure then amplified the downturn. The decline triggered a massive unwinding of leveraged positions, resulting in over $1 billion in liquidations. This created a vicious cycle of forced selling that pushed prices down even further. At the same time, long-term holders who had bought at lower levels began to take profits, adding more supply to the market and overwhelming buyer demand.
A Broader Market Retreat
Bitcoin’s struggle is part of a larger pullback in risk assets. Major Asian equity indices, including Japan’s Nikkei 225 and South Korea’s KOSPI, saw significant losses, reflecting a global shift away from risk. An “anomalous” and worrying signal for analysts is that even traditional safe-haven assets like gold fell in tandem with risk assets like Bitcoin. This simultaneous decline across different asset classes often points to a systemic liquidity crunch, where investors sell whatever they can to raise cash. This environment has turned Bitcoin into what one analyst called the “canary in the coal mine”, as it is often the first asset to show volatility when market conditions tighten.
Diverging Paths Ahead
In the wake of the drop, analyst forecasts are split. Some warn of further downside, with one analyst suggesting that if volatility remains high, Bitcoin could test the $75,000 support level. However, others see a glimmer of hope in the extreme fear gripping the market. Historically, such pervasive pessimism can sometimes set the stage for a sharp rebound, particularly if ETF flows stabilize and upcoming macroeconomic data proves favorable.
The long-term narrative also offers some counterbalance. Despite the recent sell-off, major institutions like MicroStrategy have continued to accumulate Bitcoin, demonstrating a layer of long-term conviction that differs from the panic-driven exit of short-term traders. Ultimately, Bitcoin’s near-term path appears highly sensitive to the evolving narrative around Federal Reserve policy and the return of institutional demand, leaving the market at a cautious inflection point.
