Bitcoin News Today: Bitcoin's Perfect Storm: Fed, ETFs, and Leverage Drive $95k Plunge

Bitcoin's price has plunged below $95,000, triggering widespread alarm in the cryptocurrency market as analysts point to a confluence of macroeconomic, institutional, and technical factors driving the selloff. The drop, which erased the asset's 2025 gains, has reignited fears of a prolonged bearish phase, with some experts projecting the correction could extend into mid-2026.

The decline began in late November 2025, as Bitcoin lost its psychological $100,000 benchmark on November 13 and continued to slide under mounting bearish pressure. XWIN Research, a digital asset analytics firm, attributes the downturn to three key drivers. First, shifting expectations around the Federal Reserve's policy trajectory have dampened risk appetite. With hopes for a December rate cut fading, the broader market-crypto included-has faced renewed liquidity constraints. Second, capital inflows into spot Bitcoin exchange-traded funds (ETFs) have reversed sharply, with nearly $1.1 billion in outflows recorded in recent days. These withdrawals signal waning institutional confidence and a broader erosion of market sentiment.

Compounding these pressures is the unwinding of excessive leverage in the crypto market. XWIN noted that the collapse of key support levels triggered cascading liquidations, wiping out over $600 million in long positions within hours. The firm also highlighted the role of exchange-related rumors and DeFi security incidents in amplifying panic, pushing sentiment to "extreme fear" levels.

The analytics firm's analysis suggests the correction could persist for months. With Bitcoin currently hovering near $92,000–$94,000, a critical support zone, a breakdown below this range could send prices toward $85,000. XWIN's timeline implies such a scenario would prolong the downturn until early or mid-2026, depending on whether additional catalysts-such as regulatory developments or macroeconomic shifts-emerge to stabilize the market.

Investors remain divided on whether the selloff reflects cyclical bearishness or a deeper structural shift. While some argue the volatility is inherent to crypto's nascent market structure, others warn that the interplay of macroeconomic headwinds and speculative unwinding could extend the downturn. For now, Bitcoin's path hinges on the Fed's next moves, ETF flows, and the crypto ecosystem's ability to regain institutional trust.