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Bitcoin’s decline is driven by weak crypto sentiment, ETF outflows, and rising pressure from the Federal Reserve’s policy stance.
Selling by miners, long-term holders, and institutions has increased volatility across the entire crypto market.
Bitcoin’s next major support sits near $80,000, a level traders are closely watching for direction.
The digital asset market has seen a sharp slide over the past week. This is particularly evident in Bitcoin price. From an October peak near $126,000, BTC’s value has fallen over 25 percent, hitting levels around the $90,000 mark. This has erased virtually all of its gains for 2025.
A key reason for the decline is the broader macroeconomic shift away from risk assets. Earlier, market participants had anticipated that the Federal Reserve might begin cutting interest rates, which supported speculative assets, including cryptocurrencies. However, as officials signalled a more cautious tone and inflation data remained sticky, expectations for cuts were pushed back. With higher interest rates and more expensive financing, speculative assets such as Bitcoin became less attractive.
Simultaneously, institutional demand that had supported the rally began to weaken. Spot Bitcoin ETFs in the US recorded significant net outflows in early November, reflecting waning appetite or profit-taking among large investors. For example, the flow data show several days of outflows totalling hundreds of millions of dollars.
Another important factor is on-chain behaviour: miners, large wallets, and long-term holders appear to have increased selling or moved coins into exchange-accessible addresses. These actions raise the available supply that sellers can draw on, and reduce the “liquidity cushion” that earlier limited downside. While exact quantities are less clearly reported, analysts describe this as part of the recent unwind.
The sentiment reversal has been dramatic. With the rally topped out and new inflows slowed, market sentiment shifted from “greed” to “fear”. The broader crypto market reportedly lost over $1.2 trillion in value over about six weeks, suggesting the current move resembles a full correction phase.
Also Read: Will Bitcoin See a Short-Term Recovery or a Deeper Correction?
From a price-chart standpoint, the slide beneath key levels has been self-reinforcing. The drop below $100,000 (a psychological and technical level) triggered more selling as many traders had stop-losses and margin positions in that zone. According to data, Bitcoin briefly dropped below $94,000 and approached its lowest in seven months in recent days.
Moreover, the broader crypto ecosystem reinforces the weakness: with over a quarter of the overall crypto market value wiped out in a short window and liquidity draining, Bitcoin has lost the technical tailwind support it enjoyed earlier. The risk is that with fewer committed buyers and increased selling pressure, the range of support becomes narrower and the chance of further slip higher.
The level of $80,000 emerges as a plausible near-term reference point given the current backdrop. With Bitcoin now trading in the low-90 thousand-dollar zone and the selling momentum intact, if institutional demand remains weak and the macro picture stays cloudy, a further move down toward $80,000 is entirely feasible. The “max pain” zones for many traders lie in that range, meaning the potential for stop losses and psychological breakdown is higher if support fails.
That said, reaching $80,000 is not inevitable. If institutional flows stabilise or reverse, macro signals improve (for example, clearer prospects for rate cuts) or large holders curb their selling. The slide could halt or even reverse ahead of that level. In other words, $80,000 functions more as a “conditional risk-stop” than as a predetermined destination.
A rebound in Bitcoin’s price will likely need a mix of positive developments to align. One such development would be clearer signs that the Fed or other major central banks are shifting toward easing, which would boost the appeal of non‐yielding, risk assets.
Another would involve renewed institutional demand, indicating that large investors are stepping in rather than stepping out. Finally, a reduction in selling pressure from long‐term holders or miners would help restore the supply-demand balance in favour of buyers.
If none of these turn up, then consolidation or further decline remains likely. In that scenario, even if $80,000 holds for a time, the lack of fresh demand could mean a drawn-out sideways move rather than a sharp rebound.
Also Read: Is Bitcoin a Good Investment for Beginners? Pros, Cons, and Risks
The current correction in Bitcoin arises from several factors. With over a quarter of Bitcoin’s value erased since its October peak and the broader crypto market losing more than $1 trillion in value, the crisis of confidence is palpable.
$80,000 is a realistic near-term level if the negative momentum continues, but the path forward depends on whether the supporting demand returns or the selling pressure intensifies. Until then, volatility will remain elevated, and the market faces both clear risks and possible opportunities.
1. Why is Bitcoin crashing right now?
Bitcoin is falling due to weaker crypto sentiment, large ETF outflows, increased selling from long-term holders, and concerns around the Federal Reserve’s policy direction.
2. Could Bitcoin drop to $80,000?
Yes, $80,000 is a key support zone and could be tested if selling pressure continues and institutional demand remains weak.
3. How are ETFs affecting Bitcoin’s price?
Spot Bitcoin ETFs recently saw heavy outflows, reducing institutional buying and adding downward pressure on the crypto market.
4. Is the broader crypto market also falling?
Yes, most major cryptocurrencies have declined alongside Bitcoin as risk appetite drops and liquidity drains from the market.
5. What could help Bitcoin recover?
A shift toward easier Federal Reserve policy, renewed ETF inflow, and reduced selling from miners and long-term holders could support a rebound.
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