Bitcoin News Today: Bitcoin's $87k Rally: Fear-Driven Rebound or Deeper Market Shift?

Bitcoin surged past $87,000 in late November 2025, defying a backdrop of market uncertainty and heavy selling pressure, as analysts pointed to a confluence of technical support levels, shifting institutional sentiment, and historical parallels to previous rebounds. The cryptocurrency had earlier dipped to a seven-month low of $86.3k amid a bearish wave that saw over $914 million in liquidations, with long positions accounting for $703 million of that outflow. However, a combination of stabilizing on-chain metrics, ETF inflows, and macroeconomic factors sparked optimism that the price could rebound sharply in the coming months.

The recent price action has been shaped by a critical technical support level at $87k, where Bitcoin has been retesting the lower boundary of a symmetrical rising channel formed since early 2023. Santiment's analysis highlighted that retail traders, who historically have been bearish predictors, are currently in an extreme fear phase, with CoinMarketCap's Fear and Greed Index hitting a yearly low of 15/100. This pattern has historically preceded bullish reversals, as seen in past cycles when extreme capitulation led to rebounds. Additionally, historical precedents, such as the post-2019 U.S. government shutdown rebound, suggest liquidity infusions and potential Federal Reserve easing could catalyze a similar recovery.

Institutional activity further underscored the market's mixed signals. U.S. spot Bitcoin ETFs ended a five-day outflow streak on November 20, with $75.4 million in net inflows as Bitcoin reclaimed $92k. BlackRock's iShares Bitcoin Trust (IBIT) led the inflows with $60.6 million, while Grayscale's Mini Trust ETF added $53.8 million.

However, November marked the worst month for crypto ETPs since February, with nearly $3 billion in outflows. Despite these outflows, trading volume in ETFs rose 18% to $6.89 billion on November 20, hinting at a partial return of investor appetite.

Macro factors also played a pivotal role. Nvidia's third-quarter earnings report, which showed a 62% revenue jump to $57.01 billion, temporarily calmed jittery markets and pushed Bitcoin above $90k. The chipmaker's dominance in AI infrastructure reinforced demand for crypto-linked tokens, with AI-focused projects like TAO and RNDR rising 4%-5% post-earnings. Meanwhile, the Federal Reserve's potential rate cuts-currently priced at 73.3% for a 25-basis-point cut-added to uncertainty, with crypto markets serving as an early indicator of central bank intervention.

Retail and institutional sentiment diverged sharply. Ark Invest, for instance, added $39.6 million to crypto-related stocks, including Bullish and Bitmine, as broader market declines created "bargain-hunting" opportunities. Conversely, digital asset treasuries (DATs) like FG Nexus and ETHZilla accelerated Ethereum sales to reduce discounts to net asset value, exacerbating the selloff. This institutional deleveraging, combined with lingering effects from the October 10 liquidation event, kept pressure on altcoins like Ethereum, which fell to $2,800.

The path forward remains fraught with challenges. While technical indicators suggest a potential rebound, macroeconomic headwinds-including U.S. job market volatility and liquidity constraints-pose risks. BofA's Michael Hartnett noted that crypto's role as a "canary in the coal mine" for Fed policy could intensify as markets anticipate rate cuts in 2026. For now, Bitcoin's consolidation around $87k and Ethereum's fragile support near $2,800 will be key watchpoints for a sustained recovery.