Bitcoin and major altcoins are recording steep losses, as the selling pressure increases across the board on the back of aggressive outflows and weakening investor sentiment.
Spot Bitcoin and Ethereum ETFs see record redemptions, signaling a major shift toward risk aversion, amplifying downside volatility in digital assets.
Today’s market sell-off is supported by long-term holders, macro uncertainty, and professional trading activity, but some analysts believe the correction may be nearing its end.
Crypto prices today reflected a sea of red, with major digital assets down and Bitcoin leading the decline. The world's largest cryptocurrency currently changes hands at $85,970.42, down 7.18% in the last 24 hours. It was a steep correction compared to its highs lately. Bitcoin continues to face selling pressure from all kinds of market participants. Let’s explore why crypto market is down today in detail based on CoinMarketCap data.
Bitcoin Price has dropped considerably, momentarily going below $90,000 earlier this week for the first time in seven months. Currently, at $85,970, the market capitalization stands at $1.71 trillion with a nearly $99 billion trading volume over the last day.
According to CoinSwitch Markets Desk, “BTC is currently trading in the $86,000-$87,000 range after pulling back from levels near $93,000. In broader markets, US equities saw an intraday reversal. A mixed US jobs report, the first released after the shutdown, showed September payrolls rising by 119,000, above expectations, while the unemployment rate increased to 4.4%.”
CoinSwitch analysts further explained, “The data adds uncertainty ahead of the Federal Reserve’s December rate-cut decision and keeps investors cautious. BTC’s recent move lower was accompanied by liquidations of leveraged long positions, with the break below $89,000, prompting additional forced selling. The $89,000-$92,000 band remains the closest liquidity area and a potential zone for short-term recovery, while further downside may depend on whether $85,000 holds.”
Ethereum Price mirrors Bitcoin's weakness, dropping 7.55% to $2,815.05. Now the second-largest cryptocurrency has a market value of $339.76 billion, with $44.5 billion in 24-hour trading activity across its 120.69 million circulating supply.
Solana Price was hit even harder, falling 7.95% to $132.44. The popular smart contract platform now has a market cap of $74 billion, with nearly $8 billion in daily volume.
XRP price was $1.98, having shed 6.90%, with its market capitalization at $119.6 billion. BNB was down 5.09% to $861.93, while Dogecoin fell 6.50% to $0.1473. Cardano dipped 8.33% to $0.4276. At the same time, Tron showed relative strength, down only 2.28% at $0.2807.
The stablecoins Tether and USD Coin held their pegs at $1, with market caps of $184.57 billion and $73.81 billion, respectively.
Also Read: Crypto Prices Today: Bitcoin Price Up 1.80% at $92,810, Solana Jumps 3.98% Despite Altcoin Losses
Here are the top global cues impacting crypto prices today:
If there is one big reason, it is massive outflows from US Bitcoin spot ETFs that recorded $903.2 million in net redemptions on November 21. Interestingly, no Bitcoin ETF reported inflows during this period, reflecting that investors are heading for the exit en masse.
Ethereum ETFs also saw continued weakness, bleeding another $261.6 million on November 20. The biggest outflows came from ETHA, shedding $122.6 million, followed by FETH with $90.5 million in redemptions. These sustained outflows have started to highlight growing risk aversion in both major crypto ETF markets.
A new report by VanEck explains that the current downturn in Bitcoin is driven principally by medium-term holders. Wallets that have held coins for 3-5 years have cut their balances by 32% over the past two years, putting significant selling pressure on the market.
However, the longest-held Bitcoin wallets remain ‘remarkably stable,’ suggesting this isn't a full-scale capitulation but rather a cyclical rotation among traders. VanEck also noted that speculative activity has fallen off sharply, with Bitcoin perpetual open interest down 20% since October 9.
Crypto news from recent months continues to impact today's prices. The major turning point came on October 10, when a market meltdown wiped out more than $1 trillion in value across all tokens; over $19 billion in leveraged crypto positions were liquidated, partly triggered by US President Donald Trump's threats of new tariffs on China.
BitMine industry expert Tom Lee told CNBC that the current market weakness tracked very closely with the October 10 crash, which was triggered by a stablecoin pricing error and became the largest liquidation event on record, wiping out nearly 2 million accounts. He added deleveraging phases in general last about eight weeks, and the market is now in week six.
Several factors are combining to keep crypto prices today under pressure.
Long-term Bitcoin holders selling: The so-called ‘OGs,’ or older Bitcoin holders that hold large amounts, have been selling for several weeks now, flooding the market with supply.
Economic uncertainty: The US economy faces deep uncertainty in part because a government shutdown has prevented key data releases. This uncertainty is pushing crypto lower.
Federal Reserve concerns: The result of the Fed's next interest rate decision in December is not clear. Investors are scaling back expectations of a rate cut, with transcripts from the Fed's October meeting showing the committee deeply divided.
Aggressive professional trading strategies on offshore, unregulated platforms are also in play in setting crypto prices today. Professional traders at large hedge funds and trading firms create sharp volatility using techniques that sometimes fall under the definitions of spoofing or laddering. These traders make money regardless of the direction in which the price moves, while less professional traders often lose when they are forced to sell during downturns.
Also Read: Crypto News Today: Pi Network Makes MiCA Breakthrough, BNB Chain Hit by $3.1M Exploit, Samourai CTO Jailed, and Bitcoin ETFs Turn Positive
Despite current weakness, some see signs of recovery ahead. According to Tom Lee, the deleveraging cycle could be almost over, meaning that the correction might finish in two weeks. Industry participants also point to growing mainstream adoption and institutional interest as longer-term positives, with smaller whale wallets steadily accumulating Bitcoin even as larger holders trim positions.
1. Why is crypto market down today?
Among the primary reasons for a drop in crypto prices today, one would include big ETF outflows, increased selling from medium-term Bitcoin holders, and broader risk-off sentiment in financial markets. These factors combine to reduce buying pressure, while professional traders use volatility to their advantage, driving even sharper price swings across major assets.
2. Will Bitcoin price bounce back anytime soon?
While short-term volatility remains high, some analysts believe Bitcoin may begin stabilizing once the current deleveraging cycle ends. Historical patterns demonstrate that these phases generally tend to last about eight weeks. Besides that, ongoing institutional interest and accumulation by smaller whale wallets might help a gradual recovery once selling pressure cools.
3. Why are ETF outflows affecting Bitcoin so much?
The outflows from ETFs directly reduce demand for Bitcoin, as these funds hold actual BTC. When investors start redeeming shares, ETFs must sell their Bitcoin reserves and therefore put additional downward pressure on the market. This impact is most intense during those times when outflows occur in all major ETFs, reflecting a broad-based retreat by investors.
4. Do stablecoins, such as USDT and USDC, get affected by this market crash?
Because they are pegged to the US dollar, stablecoins usually aren't affected by price volatility. Today, both USDT and USDC continue to trade near $1 despite the broader crypto selloff. Their stability gives investors a temporary safe haven during market downturns, allowing them to exit volatile assets without converting to fiat.
5. What should beginners do in case of a crypto market fall?
A novice should avoid panic selling; instead, he/she should learn about market cycles. Downturns do create opportunities, but these will be fruitful only in case of proper risk management and research. It's wise to diversify, avoid over-leveraging, and stay updated on macroeconomic conditions that influence crypto movements before making any decisions.
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