Bitcoin News Today: Bitcoin Dives 25% as ETFs Stay Steady, Highlighting Institutional Faith

Bitcoin's recent price action has drawn comparisons to levels last seen during the FTX collapse era, as short-term holders face record underwater positions and market corrections mirror earlier 2025 volatility. The cryptocurrency fell to $82,605 on November 21, 2025, down 4.53% for the day, extending a 23% monthly loss-the worst since June 2022 according to economic data. The decline has pushed Bitcoin below its 2025 realized price of $103,227, leaving the average buyer in the red by 13% as reported by CoinDesk.

Glassnode data reveals that short-term holders (STHs)-those who have held Bitcoin for less than 155 days-now collectively hold 2.8 million BTC at a loss, the highest level since the FTX collapse. This figure marks a critical juncture for the market, as STHs account for a significant portion of recent purchasing activity. With Bitcoin trading below $95,000, nearly all coins acquired since June 15 (when the price was $104,000) are now underwater according to market analysis. Meanwhile, long-term holders (LTHs) have continued to reduce their holdings, with Glassnode tracking a 452,532 BTC reduction in LTH supply since July 2025. Nicholas Gregory, a Bitcoin advocate and Fragrant Board Director, attributed these sales to "lifestyle-driven" decisions rather than bearish sentiment, noting the U.S. ETF launch and $100,000 price targets as catalysts according to CoinDesk reporting.

The divergence between Bitcoin's price and U.S. spot ETF performance has also become pronounced. Despite a 25% drop in Bitcoin's value from its October all-time high, ETF assets under management have only fallen 4%, remaining near record levels in BTC terms. This stability highlights institutional confidence amid retail investor distress. However, the broader market shows signs of strain. Open interest in Bitcoin futures has dropped 35% from October's $94 billion peak, and over $1.9 billion in long positions were liquidated in a single day as the price fell below $84,000.

Historically, Bitcoin corrections often dip below the annual realized price, creating entry points for buyers. The current drawdown mirrors the April 2025 correction, which saw prices fall from $109,000 to $76,000 over 80 days. While the current correction is shorter-43 days as of November 21- it has already erased $120 billion in crypto market value, pushing the total cap below $2.8 trillion. Analysts warn of further downside risks, with some suggesting a path toward $75,000 if macroeconomic pressures persist. Weak U.S. employment data and fading hopes for Federal Reserve rate cuts have exacerbated fears, particularly after the October 10 liquidation event that wiped $19 billion in leveraged bets.