Bitcoin News Today: ETF Investors Turn Red as Bitcoin Hits 7-Month Low Below $86K

Bitcoin's price plunged below $86,000 on Nov. 20, 2025, marking a seven-month low as a broad crypto selloff deepened, driven by macroeconomic anxieties and a fragile risk appetite. The drop, which erased nearly 30% of the digital asset's value from its October peak above $126,300, has left Bitcoin ETF investors in the red for the first time in history and triggered a $1.2 trillion wipeout in the broader crypto market cap. The decline accelerated after the Federal Reserve's mixed October employment data clouded expectations for rate cuts, spooking traders who had previously bet on a dovish pivot.

The sell-off has exposed vulnerabilities in the ETF-driven crypto boom. US spot Bitcoin ETFs, which had attracted over $50 billion in inflows this year, now face net outflows of $3.1 billion since late October, with investors fleeing volatile assets. The average cost basis for ETF inflows sits at $89,600, meaning Bitcoin must rally above that level to return to breakeven for institutional buyers. Analysts warn that further outflows could intensify if sentiment doesn't stabilize. "Bitcoin's sharp drop places the majority of 2025's institutional buyers underwater for the first time and risks triggering more outflows," said Nick Ruck of LVRG Research.

Despite the bearish momentum, some analysts argue the worst may be over. On-chain data shows whales have accumulated Bitcoin over the past month, signaling conviction in a recovery. Matt Hougan of Bitwise Asset Management called the current price a "great buying opportunity for long-term investors," while Tom Lee of BitMine predicted a 40% rebound before year-end, pushing Bitcoin back toward $126,000. CryptoQuant's weekly report noted that market conditions are the most bearish since the 2023 bull cycle began, but added that institutional adoption - bolstered by 110+ crypto ETFs in the US - could provide a floor.

The selloff has rippled across the crypto ecosystem. Ethereum (ETH) and Solana (SOL) have fallen to four- and two-month lows, respectively, while stocks of crypto-focused firms like Coinbase and Strategy have plummeted 30-40% since October according to market data. Even Bitcoin miner Canaan, which reported Q3 revenue growth, saw its stock spike amid broader market weakness, highlighting diverging fortunes in the sector.

Macro factors remain pivotal. A record $19 billion in crypto liquidations during October's flash crash, coupled with Trump-era tariff threats and Fed policy uncertainty, have kept risk-off sentiment dominant. James Butterfill of CoinShares attributed the selloff to a "vacuum of meaningful macro data," with traders increasingly prioritizing safety over speculative bets according to analysis.

While short-term volatility persists, some industry executives frame the drop as a "healthy reset." Bitget's Gracy Chen argued that controlled leverage and a more diversified ecosystem reduce the risk of a cascading collapse, forecasting a stabilization toward $95,000 by late November. Meanwhile, Vetle Lunde of K33 predicted a bottom between $84,000-$86,000, citing historical drawdowns that typically last over 50 days.