Bitcoin News Today: Is Bitcoin's $87K Slide a Correction or the Start of a Deeper Downturn?

Bitcoin's price has plunged below $87,000, marking one of the most significant market corrections since the launch of spot ETFs, as institutional outflows, whale selling, and macroeconomic pressures converge to test the cryptocurrency's resilience. The recent 11-day sell-off erased a $25,000 chunk from Bitcoin's November 11 peak of $107,500, pushing it to a low of $80,600 before a partial rebound to around $87,000. Analysts are now debating whether this represents a temporary consolidation or the beginning of a deeper bearish phase, with on-chain data and institutional behavior offering conflicting signals.

The selloff has been exacerbated by sustained outflows from Bitcoin ETFs, which recorded $151 million in withdrawals on Monday alone, extending a four-week streak of net outflows since late October. This trend reflects waning institutional appetite, with BlackRock's IBIT ETF bleeding $2.47 billion in November as investors shifted to rebalancing and profit-taking amid tightening monetary policies. Meanwhile, on-chain metrics reveal a mixed picture: mid-sized wallets (holding 10–1,000 BTC) have been accumulating, but larger whales (1,000–10,000 BTC) continue to offload, limiting the market's ability to form a clear bottom.

Crypto whales have intensified their selling activity in November 2025, depositing large amounts of Bitcoin onto exchanges-a move often associated with impending price declines. Data from CryptoQuant shows these movements coincide with a 20% drop in Bitcoin's price since November 11, with liquidity thinning and volatility amplifying price swings. Regulatory uncertainties, particularly in the U.S. and EU, have also contributed to investor caution, as tightening compliance frameworks and potential tax changes prompt early liquidation of holdings.

Technical indicators offer some hope for a rebound. The RSI on Bitcoin's daily chart has climbed to 31, nearing oversold territory, while the MACD lines show signs of a potential bullish crossover. If buyers step in, Bitcoin could test the $90,000 resistance level. However, a breakdown below $85,000 would likely trigger further declines toward the $80,000 psychological threshold, a scenario supported by historical patterns in previous corrections.

Long-term investors remain divided. Some argue that the current selloff is a natural correction following months of speculative buying, with fundamental factors-such as institutional adoption and blockchain innovation-still intact. Others warn that the market's fragility, compounded by macroeconomic headwinds and regulatory risks, could prolong the downturn. The December Federal Reserve meeting, which will assess inflation and interest rate trajectories, is seen as a critical catalyst that could determine Bitcoin's near-term direction.

As the market grapples with these dynamics, investors are advised to adopt risk-mitigation strategies, including dollar-cost averaging and portfolio diversification, rather than attempting to time the market. While Bitcoin's price volatility is not new, the interplay of institutional, technical, and regulatory factors underscores the complexity of predicting its next move.