Bitcoin News Today: Bitcoin's Sharp Drop Unveils Macro and Market Structure Fragility

Bitcoin's price fell below $85,000 on November 21, marking a 7% decline in 24 hours and a 20% drop over the past month, according to CoinDesk data. The cryptocurrency's slide reflects deteriorating market structure, with heavy selling pressure from long-dormant wallets and shifting macroeconomic expectations. Derivatives data shows traders increasingly favoring downside positioning, as put options outpace calls, signaling heightened bearish sentiment.

The sell-off intensified as market makers like FlowDesk noted a surge of coins moving from inactive wallets to exchanges, overwhelming buyer demand according to market analysis. This trend aligns with broader liquidity challenges, as DiPasquale of BitBull Capital explained, citing "profit-taking by long-term holders, shrinking liquidity, and macro pressures" as key drivers. He emphasized that tighter financial conditions and rising credit risk concerns have pushed investors out of high-beta assets, with crypto bearing the brunt of the rotation.

The selloff coincided with a sharp drop in the Crypto Fear & Greed Index, which hit 9 on November 17 - the lowest level since July 2022 according to data. This extreme fear metric was accompanied by $565 million in crypto liquidations within 24 hours, primarily driven by short-term holders dumping coins at losses. On-chain analysis from CryptoQuant revealed that coins younger than three months accounted for most selling volume, while long-term holders maintained relatively normal mid-cycle behavior according to analysis.

Market participants also grappled with shifting Federal Reserve expectations. The probability of a December rate cut fell to 43% from over 60% in previous weeks, exacerbating risk-asset caution. U.S. spot Bitcoin ETFs recorded a third consecutive week of outflows, with average investor costs remaining near $86,680 - 9% below current prices. Meanwhile, Bitcoin's Realized Cap continued rising, indicating sustained capital inflows despite the price correction according to analysis.

Bitcoin's decline has outpaced losses in equities, which remain supported by strong earnings from companies like Nvidia. However, the cryptocurrency now trades near its 2025 opening price, with key support levels under scrutiny. Analysts like Maja Vujinovic of FG Nexus attribute the slide to a "convergence of macro and market structure factors," underscoring the fragility of the current market environment.

As of press time, Bitcoin traded near $95,730, down 0.86% on the day. The market remains closely watching institutional activity and macroeconomic cues for signs of stabilization.