Crypto Markets Face Sharp Decline as Bitcoin Drops Below $90K
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Written by
Simonas Brazionis - Updated 2025-11-21 16:16:55
Crypto markets are facing significant challenges as Bitcoin drops below $90,000, marking its lowest level in seven months. The price of Bitcoin fell to $81,050, leading to massive liquidations across the market. Over $2.2 billion worth of positions were liquidated in the past 24 hours, with the majority of liquidations coming from long positions. Bitcoin saw a 7.5% drop, and Ethereum followed with a 7.8% decline. XRP also took a hit, losing 6.5%.
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Institutional Outflows and ETF Impact
Institutional interest in the market has been dwindling, with both Bitcoin and Ethereum ETFs experiencing substantial outflows. On November 20, Bitcoin ETFs saw $372.8 million in net outflows, while Ethereum ETFs recorded $74.2 million. This shift indicates that institutional investors are pulling back amid growing uncertainty.
Macroeconomic Conditions and Market Sentiment
The broader macroeconomic environment is adding to the market’s volatility. The Federal Reserve’s stance on inflation and interest rates is a key factor, as analysts suggest Bitcoin may struggle to recover in the short term. With economic conditions shifting, traders are bracing for more uncertainty, and the fear among investors is evident, with the Crypto Fear and Greed Index remaining in the “extreme fear” zone.
Outlook and Potential Recovery
Despite the sharp decline, some analysts remain hopeful that the market may recover, though it’s unclear when that will happen. Bitcoin’s price hovering around $90,000 is seen as a potential support level, but if the downturn continues, the market could face deeper losses. Until the macroeconomic factors stabilize and investor confidence is restored, the market is expected to remain volatile.
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