The cryptocurrency market continued its decline on Thursday, with Bitcoin falling more than 4% below $87,000 for the first time since April. This slide has wiped out over $1 trillion in value since early October, driven by liquidations, investor selling, and macroeconomic pressures. Stocks also reversed earlier gains, amplifying the downturn in risk assets.
The crypto market's retreat, ongoing for over a month, intensified on Thursday, November 20, 2025, as Bitcoin tumbled alongside other risk assets following a stock market reversal. Bitcoin dropped more than 4% to below $87,000—specifically reaching $86,398—marking its first time below that level since April and a 31% decline from its October 6 high above $126,000. Year-to-date, Bitcoin is now down more than 5%.
The total crypto market capitalization has fallen from about $4.2 trillion in early October to under $3 trillion, erasing more than $1 trillion in value. A pivotal event was the October 10 liquidation cascade, the largest in Bitcoin's history, where investors offloaded between $19 billion and $30 billion in leveraged positions. This was triggered partly by US President Donald Trump's threats of new tariffs on China, heightening trade war tensions.
Contributing factors include heavy selling by long-term holders, dubbed 'OGs,' who offloaded around 42,000 BTC (about $4 billion) this month. Spot Bitcoin ETFs recorded three consecutive weeks of outflows, with $866 million in redemptions on Thursday alone—the second-largest daily figure on record. Macroeconomic uncertainty, including a potential government shutdown delaying key data releases and fading expectations for a Federal Reserve rate cut in December, has weighed on sentiment. Transcripts from the Fed's October meeting revealed deep divisions among policymakers on interest rates.
Technical pressures persist, with volatile prices due to forced liquidations and thin liquidity. As noted in a 21Shares report, 'Wealthy Bitcoin investors are selling and ETFs are seeing outflows.' Nic Puckrin, CEO of Coin Bureau, attributed the drop to 'long-term selling by OGs, an uncertain economic climate, and a mass deleveraging event on the 10th October.' Crypto expert Carol Alexander from Sussex University highlighted aggressive trading by professional hedge funds on unregulated platforms, which generate volatility through strategies like spoofing, likening the market to 'a football match with no referee.'
Fundstrat's Tom Lee linked the ongoing decline directly to the October 10 liquidation event. Satraj Bambra, CEO of Rails exchange, observed, 'We are probably close to a local bottom... But if that bounce fails to sustain... we are likely heading lower. This is still a fragile market.' Despite the bearish outlook, Puckrin forecasted a rebound, noting crypto's history of emerging stronger from cycles amid increasing institutional adoption.
