Bitcoin News Today: Crypto's "Richer Soil" After Plunge as Buyers Absorb Capitulation Flows

Bitcoin's Price Plummets Below $95,000 as "Extreme Fear" Grips Crypto Market

Bitcoin's price slid below $95,000 in late November 2025, triggering widespread panic across the cryptocurrency market as investors grapple with a prolonged bearish trend. The selloff, driven by waning institutional demand, macroeconomic uncertainty, and cascading liquidations, has pushed the Fear & Greed Index to a nine-month low of 10, signaling "extreme fear" among traders. XWIN Research, a crypto analytics firm, warned that the correction could persist until mid-2026 if key support levels, such as the $92,000–$94,000 range, are breached.

The decline has been fueled by multiple factors. Reduced expectations for a Federal Reserve rate cut in December-a critical catalyst for risk-on sentiment-has dampened investor optimism. Concurrently, spot ETFs have seen nearly $1.1 billion in outflows over recent days, reflecting a sharp reversal in capital flows. Compounding these pressures, excessive leverage in the market unwound violently, with over $600 million in forced long closures within hours of key support levels breaking.

Glassnode noted that Bitcoin remains "stuck in consolidation limbo," with buyers absorbing capitulation flows but lacking the momentum to drive a sustained recovery. A dense supply cluster between $106,000 and $118,000-where many investors exit to break even-has created a formidable resistance zone, capping upward movement. Meanwhile, the broader market has deteriorated, with 96 of the top 100 cryptocurrencies experiencing declines and the CoinDesk 20 index losing 5.8% of its value in a week.

The sell-off has also exposed fragility in the crypto ecosystem. Avalanche (AVAX), Solana (SOL), and Ethereum (ETH) have all seen double-digit drops, with ETH trading at $3,208, down 35% from its all-time high. On-chain data reveals that long-term Bitcoin holders have sold 815,000 BTC ($79 billion) in 30 days-the largest outflow since January 2024-while exchange inflows surged to $183 billion in trading volume.

Amid the turmoil, political developments have added to the uncertainty. President Donald Trump's controversial pardon of Changpeng Zhao, founder of Binance, has raised concerns about conflicts of interest. Zhao's company, which had previously supported the Trump family's crypto venture, World Liberty Financial, received a $2 billion investment from an Emirati fund in May 2025, a transaction critics argue was designed to ingratiate Trump with foreign interests. Legal experts have condemned the pardon as a misuse of executive power, citing potential corruption risks and divided loyalties.

Despite the gloom, some analysts see a silver lining. The market's current "soil looks richer" after the washout, with steady accumulation by long-term holders and technical indicators suggesting potential relief rallies. However, a sustained recovery will require renewed inflows to overcome distribution pressures and restore confidence in institutional demand.