Why Bitcoin is Plunging Today: Price Poised for Largest Monthly Decline in Three Years
A wave of selling has swept across the crypto market, pushing Bitcoin toward its weakest monthly performance in more than two
years and erasing the gains it built earlier this year. Among the major factors pulling down the top crypto is a weakening institutional sentiment.
Digital assets meet tradfi in London at the fmls25
The renewed turbulence has shaken investor confidence,
sparked rapid liquidations, and revived questions about how far the retreat
could go as risk appetite fades across global markets.
Bitcoin Slips to Seven-Month Low as Liquidations Mount
Bitcoin fell as much as 13% on Friday to around $80,760,
its lowest level since mid-April, when it plunged to $76,273, according to
CoinMarketCap.
On the other hand, Ether has not been spared as bears dominate the crypto space. The second-largest crypto slid was trading at $2,733
at the time of publication, representing an 8% and 12% decline in the daily and
weekly chart, respectively.
Other large tokens including Solana, XRP, BNB and
Dogecoin posted declines of between 8% and 11%. CoinMarketCap data shows that the total market capitalization dropped 7% to $2.8 trillion.
The pullback has wiped out roughly a quarter of
Bitcoin’s value this month, marking its steepest monthly decline since June
2022. That period followed the collapse of TerraUSD and the eventual fall of FTX, which sent shockwaves across the industry.
“This correction is not only erasing any 2025
year-to-date gains but also took off critical long-term supports, including the
major bull market trendline dating back to mid-October 2023 and the Fibonacci
retracement level,” commented Deribit Chief Commercial Officer Jean-David
Pequignot.
“It is fueling legitimate fears of a deeper bearish
trend, with the next downside levels to watch at $83–$85k as a potential
confirmation zone, and even $74.5k if trend breakdown is cemented.” Still, some market analysts remain optimistic. Futures market trader Peter Brandt, commanding a following of over 800k on X, believes the trend could change for better.
Full disclosure folksOf my maximum ever Bitcoin position I still own 40%, at a price 1/20th of Saylor’s avg buy.I am a long-term bull on Bitcoin. This dumping is the best thing that could happen to Bitcoin. The next bull market in Bitcoin should take us to $200,000 or so. That…
— Peter Brandt (@PeterLBrandt) November 21, 2025
Why is Price Falling? ETF Outflows and Institutional Hesitation
Trading sentiment has weakened as institutions
pull back exposure on risk assets. Twelve US-listed spot Bitcoin ETFs recorded $903 million in
net redemptions on Thursday, marking their second-largest one-day outflow since
launching in January 2024, according to Farside Investors.
Keep reading: Why Bitcoin Is Falling Below $90K? Death Cross Triggers BTC Price Prediction to $74K
Meanwhile, a decade-old wallet labeled “Owen Gunden”
contributed to selling pressure after transferring and offloading around $1.3
billion in Bitcoin since late October, according to blockchain analytics firm
Arkham Intelligence.
OWEN GUNDEN HAS NOW SOLD ALL OF HIS $1.3 BILLION BITCOINOwen Gunden was an OG Bitcoin whale who held BTC since 2011. Since late October he has sold 11K BTC worth $1.3 billion.He has just transferred $230M of BTC to Kraken, marking his final sale. pic.twitter.com/m0gQWCHrxZ
— Arkham (@arkham) November 20, 2025
Weakness in broader markets has intensified the
decline. US equities reversed Thursday’s early gains despite optimism
surrounding AI-related earnings, with concerns about stretched tech valuations
and diminishing odds of a Federal Reserve rate cut next month weighing on
sentiment.
Technical Levels Break as Bitcoin Loses Momentum
Technically, Bitcoin has slipped below both its 50-day and 200-day
moving averages, a sign of weakening trend support. Analysts warn that a
further drop toward $75,000 is possible if risk sentiment deteriorates and tech
valuations face more pressure.
The selloff has also hit crypto-related equities.
Shares of Hong Kong-listed spot Bitcoin ETFs fell close to 7% on Friday. Public
companies that stockpiled digital assets on their balance sheets earlier this
year have also come under pressure as token prices slide.
Bitcoin’s surge to a record above $120,000 in early October, driven by regulatory improvements and institutional enthusiasm, now
appears distant. With global markets turning cautious and volatility rising,
investors are preparing for the possibility of more turbulence before stability
returns.
This article was written by Jared Kirui at www.financemagnates.com.
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