November 20, 2025 •

Bitcoin has dropped below the $90,000 threshold for the first time in seven months, extending a sell-off that has rippled across cryptocurrency markets and raised questions about digital assets’ role as a leading indicator for broader risk-asset weakness.

Market Overview

The global cryptocurrency market capitalization declined 2% over 24 hours to $3.08 trillion, with trading volume registering $202 billion. Bitcoin has fallen 2.5% daily and 12.7% weekly, breaking through key support levels that traders had been monitoring closely.

Other major cryptocurrencies followed suit, with Ethereum down 14% over the week and XRP declining more than 17% during the same period. The Bitcoin Fear and Greed Index has entered “Extreme Fear” territory, reflecting deteriorating market sentiment.

Early Holder Liquidations Intensify Pressure

A significant factor contributing to the downturn has been large-scale selling by long-term Bitcoin holders. Recent blockchain data reveals substantial movements from dormant wallets dating back to Bitcoin’s earliest days.

Notable transactions include:

• BitcoinOG (1011short) depositing approximately 13,000 BTC worth $1.48 billion to Kraken since October 1
• Early adopter Owen Gunden transferring 3,265 BTC valued at $364.5 million to Kraken since October 21
• Gunden’s final liquidation of 2,499 Bitcoin worth $228 million on Thursday, completing the sale of his entire 11,000 BTC holdings accumulated since October 21—a total liquidation of approximately $1.3 billion

These movements from wallets that have remained inactive for years have compounded selling pressure during an already fragile market period.

Bitcoin ETF Outflows Continue

U.S.-listed spot Bitcoin ETFs briefly interrupted a five-day outflow streak on Wednesday, with BlackRock’s IBIT attracting $60.6 million in new capital. However, this influx fell short of offsetting the fund’s previous-day losses exceeding $500 million.

While Grayscale’s Bitcoin Mini Trust also recorded positive flows, Fidelity and VanEck experienced combined outflows of $39 million. The broader picture remains concerning: crypto exchange-traded products recorded $2 billion in outflows last week, the highest weekly figure since February.

U.S. spot Bitcoin ETFs have seen nearly $3 billion in redemptions throughout November, positioning the month as one of the weakest on record for the category.

Macro Factors and Liquidity Concerns

Market conditions are being shaped by uncertainty surrounding Federal Reserve policy. Rate-cut expectations for December have declined following recent developments, while minutes from the Fed’s October meeting revealed a divided committee weighing 3% inflation against the risks of premature policy easing.

Liquidity constraints have emerged as a recurring theme. CryptoQuant analysts note that reduced liquidity has been a primary contributor to Bitcoin’s November decline, as tightening financial conditions typically weigh heavily on speculative assets.

Thursday’s U.S. equity session illustrated the market’s volatility. Despite an initial rally driven by strong Nvidia earnings that pushed the Nasdaq up nearly 2.5%, markets reversed course and closed lower. The September jobs report, showing 119,000 new positions—more than double expectations—added complexity to forecasts about the Fed’s next moves.

Technical Analysis and Market Structure

Analysts suggest that Bitcoin has reached “cycle-level exhaustion” near the $90,000 level. Market observers indicate that Bitcoin would need to reclaim the $97,000 to $98,500 range to reestablish bullish momentum, with additional resistance identified around short-term holder cost basis levels between $95,000 and $97,000.

The October liquidation cascade, which eliminated over $19 billion in leveraged cryptocurrency positions, has left lasting damage to market structure. Liquidity has not fully recovered, leaving prices vulnerable to moderate selling pressure.

Broader Market Implications

Cryptocurrency weakness has preceded broader market pullbacks on several occasions throughout 2024 and 2025. The pattern re-emerged in early November, when Bitcoin began declining shortly before equities showed signs of stress.

While analysts remain cautious about characterizing crypto as a definitive early warning signal, shared macroeconomic conditions—particularly interest rate uncertainty—increase the likelihood of simultaneous pressure across asset classes.

Gold has held steady near $4,084 per ounce, with analysts attributing its resilience to expectations that the Federal Reserve may avoid another rate cut in December.

Outlook

As Bitcoin tests critical support levels and long-term holders continue liquidating positions, market participants are closely monitoring both technical indicators and macroeconomic developments. The combination of reduced liquidity, persistent ETF outflows, and uncertainty around monetary policy suggests continued volatility in the near term.

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Market data current as of November 20, 2025, 20:28 GMT