Bitcoin News Today: Bitcoin's $93K Plunge: Fed's Inflation Control vs. Liquidity Demand Clash

Bitcoin tumbled below $93,000 in late November, marking its first sub-$93,000 level since the start of 2025, as a confluence of U.S. selling pressure, ETF outflows, and uncertainty around a Federal Reserve rate cut fueled a 22% correction from October's peak of $126,080. The cryptocurrency's decline accelerated amid $657.88 million in liquidations over 24 hours, with long positions accounting for the bulk of forced closures. This selloff followed a 189-day streak of Bitcoin closing above $100,000-a psychological threshold now breached for the first time since May.

The Fed's December rate cut, once seen as a near-certainty, now sits at a 44.4% probability, according to CME FedWatch data, reflecting heightened investor uncertainty. Analysts attribute this shift to a mix of economic resilience, data gaps caused by the 43-day government shutdown, and internal divisions among central bankers. Minneapolis Fed President Neel Kashkari and San Francisco Fed President Mary Daly have publicly signaled caution, with Daly stating she remains "open-minded" but wary of premature easing. A delayed or absent cut could prolong crypto market weakness, as lower borrowing costs typically drive risk-on sentiment.

Bitcoin's technical outlook has darkened further. The asset fell below its 50-week moving average, a critical support level that had held since early 2023, and now faces resistance at $102,868. CoinGlass data shows the 50-day moving average nearing a crossover below the 200-day average-a "death cross" pattern historically associated with bearish momentum. While past death crosses in this cycle have marked local bottoms, analysts warn the current correction could deepen if the Fed maintains a hawkish stance. "Without a December rate cut, the classic Bitcoin Christmas rally is off the table," said 10X Research, which noted a lack of "meaningful marginal buyers" in the market.

ETF outflows have compounded the downward pressure. U.S.-listed Bitcoin ETFs recorded $866 million in redemptions post-government shutdown, while Ethereum ETFs saw $178 million in outflows as of Nov. 13 as of Nov. 13. These trends underscore waning institutional confidence, despite corporate adoption of Bitcoin treasuries expanding in 2025. Derivatives markets reflect similar pessimism, with Polymarket traders pricing a 66% chance of Bitcoin hitting $95,000 in November and Kalshi participants assigning 37% odds to another S&P 500 firm buying Bitcoin this year as of Nov. 13.

Retail participation has also dimmed. XRP's futures open interest fell to $3.61 billion, a fraction of its July highs, while Solana slid 5% to $145 amid a technical breakdown as of Nov. 13. Analysts like Fundstrat's Sean Farrell caution that "absence of catalysts" could extend the downturn, with a potential retest of the $90,000 range seen as necessary to reignite buying interest.

As the Fed's December meeting approaches, markets remain in limbo. Goldman Sachs and Citigroup project at least three 2025 rate cuts, which could eventually rekindle crypto optimism, but immediate relief appears unlikely. For now, Bitcoin's path hinges on whether central bankers prioritize inflation control over the growing demand for liquidity in risk assets according to analysts.