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Bitcoin News Today: Bitcoin Drops 30%: Market Correction or On the Brink of a Crash?

Bitcoin News Today: Bitcoin Drops 30%: Market Correction or On the Brink of a Crash?

Bitget-RWA2025/11/23 09:04
By:Bitget-RWA

- Bitcoin fell 30% from October's peak to $86,000, driven by regulatory uncertainty, macroeconomic risks, and institutional caution. - The U.S. government's Bitcoin for America Act proposal adds volatility by enabling BTC payments for federal obligations. - ETF outflows, whale liquidations, and bearish options signal market distress, though industry leaders call the correction "healthy." - A potential "death cross" and oversold conditions suggest further declines to $30,000 remain possible amid Fed policy

Bitcoin has tumbled close to 30% from its high in October, fueling concerns of further declines as the market faces regulatory trials, economic ambiguity, and increased caution from major players. The cryptocurrency is now trading under $86,000, marking its lowest point in seven months—

that have made Bitcoin’s recent performance a central issue for global financial markets.

The U.S. government’s cautious steps toward

have added to the asset’s volatility. The proposed Bitcoin for America Act , with the funds being allocated to a national Bitcoin reserve. Supporters believe this could protect against the dollar’s decline, while detractors argue it might encourage asset confiscation to expand the reserve. Nonetheless, the bill’s introduction has been overshadowed by the broader market downturn.

At the same time, economic challenges have grown more severe. The Federal Reserve’s postponement of rate cuts and worries about a potential AI-fueled economic bubble have unsettled investors.

, and some analysts point to a “bullish reversal fractal” that could see BTC stabilize between $85,000 and $100,000 before attempting another rally. However, the current landscape is characterized by oversold signals and a spike in bearish options activity, .

Institutional investment has also shifted negative.

, have now seen five consecutive days of outflows, with BlackRock’s IBIT alone experiencing a $523 million withdrawal in a single day. , analysts warn that the recent outflows signal a defensive repositioning rather than just short-term profit taking.

Large holders have intensified the sell-off.

in just one week, with prominent long-term investors like Owen Gunden liquidating his $1.3 billion Bitcoin stake. , as the number of wallets holding at least 1,000 BTC reached a four-month peak, indicating that institutions may be accumulating while individual investors exit.

Bitcoin News Today: Bitcoin Drops 30%: Market Correction or On the Brink of a Crash? image 0

Even with the recent upheaval, industry figures maintain a guarded sense of optimism.

, stressing that core factors like institutional involvement and regulatory advancements remain strong. Michael Sonnenshein of Grayscale shared a similar view, suggesting the market is “resetting” for future expansion. Meanwhile, of 11, which could indicate that the market is oversold and a rebound may be on the horizon.

Looking forward, Bitcoin’s direction is still unclear. Should the Federal Reserve postpone rate reductions and economic stability return, ETF inflows might pick up again. However, with technical signals hinting at a possible “death cross” and TD Sequential indicators flashing sell,

.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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