Bitcoin News Today: As Fear Grips Crypto, Analysts Spot Rebound Clues

Bitcoin's 30% plunge in November 2025 has triggered panic across crypto markets, with sentiment indexes hitting levels not seen since the 2022 collapse. The world's largest cryptocurrency fell as low as $80,537 on November 21, marking its worst monthly drop since June 2022 and sending the total crypto market capitalization below $2.8 trillion. The selloff has been fueled by a confluence of factors, including forced liquidations, fading hopes for Federal Reserve rate cuts, and institutional outflows, leaving traders grappling with "extreme fear" as measured by key indicators according to reports.

The sharp decline began after Bitcoin's October peak of $126,000, with a catastrophic liquidation event on October 10 wiping $19 billion in leveraged positions and erasing $1.5 trillion from crypto valuations according to data. This was followed by another $2 billion in liquidations in early November, according to CoinGlass. Open interest in Bitcoin futures has since fallen 35% from October's $94 billion high, signaling waning speculative activity. Meanwhile, U.S.-listed Bitcoin ETFs recorded $903 million in outflows on November 14-the second-largest daily redemption since their launch-amid broader market jitters according to reports.

Sentiment metrics paint a dire picture. The CoinMarketCap Fear & Greed Index plunged to 11/100, its lowest since March 2025, while social sentiment scores hit 4.39/10, reflecting a bearish consensus. Binance Alpha noted that fear-driven posts on crypto Twitter outperformed bullish updates by a 10:1 ratio, with traders fixating on massive whale liquidations and ETF redemptions according to analysis. "The convergence of forced liquidations and structural ETF selling has pushed the market into a particularly vulnerable state," said Ergonia's Chris Newhouse according to industry sources.

The downturn has also exposed vulnerabilities in institutional holdings. MicroStrategy's stock fell 5% as questions arose about margin pressures on large leveraged positions according to financial reports, while "Rich Dad, Poor Dad" author Robert Kiyosaki sold $2.25 million in Bitcoin to reinvest in physical assets, signaling caution among high-profile bulls. Bitcoin dominance rose to 58.12% as capital fled altcoins, a classic risk-off move during uncertainty according to market analysis.

Despite the gloom, some analysts argue the market may be nearing a turning point. Technical indicators show Bitcoin testing key support levels, with its Relative Strength Index (RSI) hitting 15.66-a deeply oversold reading. Historical patterns also offer hope: the Fear & Greed Index's prior plunge to 15/100 in 2019 preceded a multi-month rebound. Santiment data suggests retail traders' bearish predictions often reverse, adding to the case for a potential bounce.

The path forward remains fraught. Breaking below BlackRock's $84,000 ETF cost basis could trigger further declines, analysts warn according to market analysis, while macroeconomic headwinds-including stretched equity valuations and unresolved Fed policy-loom large. For now, the crypto market's "extreme fear" shows no sign of abating according to market reports.