Bitcoin News Today: Bitcoin's 25% Drop: Deleveraging Crisis or Precursor to 2026 'Tariff Tsunami'?

Bitcoin's Value Falls Dramatically Amidst Economic Uncertainty

Bitcoin's price plunged below $95,000 on Nov. 14, 2025, marking a 25% drop from its October peak and the lowest level since early May, as macroeconomic uncertainty and institutional outflows accelerated a de-risking wave. The cryptocurrency's spot ETFs saw a record $866.7 million in net outflows on Nov. 13-the second-largest single-day redemption since their January 2024 launch- according to Farside Investors data. This exodus was led by BlackRock's IBIT ($257 million) and Grayscale's Bitcoin Mini Trust ($318 million), reflecting a broader shift from high-beta assets into cash, bonds, and gold.

The sell-off coincided with the resolution of the U.S. government shutdown and a sharp decline in expectations for a December Federal Reserve rate cut. Markets now price a 30% probability of a cut, down from 52% prior to the Fed's October meeting minutes, which highlighted divided policy views and "two-sided risks" for the economy. Tighter liquidity conditions and rising Treasury yields further pressured risk assets, with Bitcoin's technical indicators worsening: a "death cross" formed as its 50-day exponential moving average fell below the 200-day average, historically signaling bearish momentum according to technical analysis.

Institutional and retail investors alike are recalibrating positions. The Harvard Endowment, for instance, took a rare step by allocating $443 million to BlackRock's IBIT, signaling cautious optimism amid volatility. Meanwhile, derivatives markets show growing leverage risks, with open interest in Bitcoin futures surging by 36,000 BTC in a week-the largest increase since April 2023. Analysts warn that overcrowded long positions could trigger cascading liquidations if prices break key support levels.

Market sentiment has reached "extreme fear," with the Fear & Greed Index hitting 10 - the lowest since the 2020 pandemic crash. This aligns with a broader deleveraging cycle, as ETF outflows extend to Ethereum and XRP, though the latter's derivatives market remains relatively quiet according to market analysis. Some analysts argue the selloff reflects profit-taking after Bitcoin's October rally to $126,000, rather than structural ETF failures. Total assets under management in Bitcoin ETFs remain above $80 billion, with the $2.6 billion in three-week outflows representing just 3% of holdings according to market reports.

The path forward hinges on macroeconomic clarity and Bitcoin's ability to stabilize above $94,000. A breakdown could test the 2025 lows near $74,500, while a rebound might rekindle demand for risk assets according to market analysis. The Trump administration's promised 2026 "tariff dividend" - $2,000 per person - has fueled speculation about a "tsunami" of liquidity for crypto, though near-term volatility persists according to market analysts. For now, the market remains in a fragile consolidation phase, with long-term holders quietly accumulating amid retail panic according to sentiment analysis.