Bitcoin (BTC), the world’s largest cryptocurrency by market value, has once again posted a sharp decline after falling to the US$86,000 range for the first time in seven months. This steep correction reflects growing market pressure amid worsening macroeconomic sentiment.

According to CoinGecko data on Friday morning (Nov 21, 2025), Bitcoin’s price dropped more than 6% in the past 24 hours, sliding from around US$92,000 to US$86,100. This marks its lowest price since April 2025, when global markets were rattled by U.S. import tariff policies that triggered widespread investor concern.

The fall pushed Bitcoin’s market capitalization down to US$1.72 trillion, while the overall global crypto market cap declined to US$2.97 trillion. Other major cryptocurrencies also suffered losses, with Ethereum (ETH) dropping to US$2,800 and falling 6% in a day. XRP, BNB, and Solana (SOL) likewise weakened between 4% and 6% during the same period.

In the derivatives market, selling pressure intensified as liquidations reached US$831 million over the past 24 hours. Long positions suffered the largest impact, with losses totaling US$712 million. BTC and ETH were hit the hardest by the liquidation waves.

Macro Sentiment Deteriorates as The Fed Turns More Hawkish

One major driver behind the downturn is the shift in stance from the Federal Reserve, which has returned to a more hawkish tone. Forbes (Nov 20, 2025) reported that markets had previously anticipated an imminent rate cut. However, recent statements from Fed officials stressed that inflation remains too high, indicating that any rate cut will likely be delayed.

Data from CME FedWatch mirrors this outlook. Only 37.6% of market participants now expect a 25 bps rate cut in December, while more than 62% expect no change. Earlier, both scenarios had nearly equal odds.

As expectations for rate cuts fade, investors have been reducing exposure to risk assets, including Bitcoin. This macro uncertainty has amplified selling pressure and accelerated BTC’s decline across both spot and derivatives markets.

Retail Selling Pressure Hits Bitcoin and Ethereum ETFs

Beyond macroeconomic factors, the crypto market downturn has been worsened by retail investors selling off Bitcoin and Ethereum ETFs. According to The Block, JPMorgan analysts noted that traders who triggered October’s correction via futures deleveraging have mostly stabilized. Instead, November’s biggest pressure comes from non-crypto retail investors entering the market through spot BTC and ETH ETF products.

This month alone, roughly US$4 billion has flowed out of BTC and ETH ETFs, surpassing the previous record set in February. The trend contrasts sharply with the equities market, where retail investors have injected around US$96 billion into equity ETFs in November, including leveraged products. Should this trend persist through month-end, total inflows could reach US$160 billion.

JPMorgan concluded that this pattern is not an isolated occurrence. Similar behavior was seen in February, March, and now November, suggesting that retail investors continue to treat crypto and equities as fundamentally different categories of risk despite both being considered risk assets.

Additional Selling from Mid-Cycle Wallets Offloading BTC

A recent report from VanEck also highlights that added selling pressure is coming from mid-cycle wallets—wallets whose coins last moved between one and five years ago. This group has begun taking profits and selling BTC in significant quantities as market volatility rises.

In contrast, long-term holders have shown no substantial selling activity and continue to maintain their positions. Selling activity from mid-cycle wallets has increased pressure in the spot market and deepened Bitcoin’s decline to its lowest level in seven months.

Currently, the crypto Fear and Greed Index remains in the extreme fear zone, indicating heightened investor anxiety and low appetite for risk assets, particularly Bitcoin.